Find solution
Do you need a down payment to refinance?

If I refinance my currently owner-financed home, do I need a down payment again?

  • I put down a down payment upon purchase, but am wondering if a bank will require another down payment with them as part of a refinance.

  • Answer:

    No, but the mortgage company may have minimum equity [(home value - loan amount) / home value] requirements. You usually need at least 5% equity and need 20% to 25% equity for best rates. Good luck.

Gregg at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

You might, yes.

Another down payment is not automatically required, but It depends on the appraised value at the time you refinance. Your original down payment plus the cost of any repairs or improvements you make can be considered as your down payment when you obtain bank financing, but if the home appraises for less than your original purchase price you will have to come up with the down payment your loan program requires. Make sure you keep receipts for any repair or improvement expenses and you also want to make sure there is a paper trail for your payment history. If you need to document your payment record you will want canceled checks or the equivalent to back you up.

Depends on how much equity you have. If at least 20%, probably not.

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.