When do you get back the down payment for the house?

Candra
At first we got a loan for no money down, we found a house got the inspection and everything done, all of a sudden the loan lady call and said that the bank need us to put down payment of 5% and they will return some of it in a couple months. I feel like that lady is tricking us because from what I heard, you cannot get the down payment back until you refinance.

Chan
Don't belive them. But if you want the house and you can put the 5% down then do it.

Beverly
You don't ever get the downpayment back. It goes towards the purchase of your home and becomes part of the equity. It's just like the downpayment on a car. BTW - you should not buy a house until you have at least a 10% downpayment, although 20% is ideal. Buying a house without any equity is a bad financial move.

Leo
you should have been told by the lender or broker that you needed a downpayment before, don't give them a penny until you talk to a lawyer ! You should already have one anyway.

Brant
I have never heard of such a thing. Most lenders do now require at least 5% down. I'm assuming she means that they'll refi you at 100% in a few months and you can get that 5% back. But first of all the odds of actually being able to do that are slim since the market is on the decline and rates vary literally everyday, so you may not be able to get the same rate in 5 months that you have now. Also, you'd still have to pay closing costs on a refi and if she says the lender is paying for them, I'd be wary of that as well because normally that just means they increase the interest rate to be able to take the closing costs out of their profit. Check around with a few other brokers, this one sounds a bit sketchy, you should be able to find one you actually trust and that will be completely upfront with you. Good luck.

Reita
I would strongly recommend checking out other loan options. You will not get a down payment back, period. It is part of the value of your new property, and is paid in lieu of taking that much out in loans.Interview several other loan officers, and I recommend going somewhere that will service your loan in perpetuity regardless of where the loan is sold in the secondary market.Talk to your Realtor about your best options, and get some names of qualified mortgagers from your Realtor.Good luck.

Antonette
Can she give you the request in writing? Usually the down payment is part of what you are paying for the home so you don't get it back. Given the mortgage crisis have you considered a more traditional loan?