Tip of the Week: 20% Down Myth
The most common myth in real estate is that you need to have a 20% down payment if you want to buy a house. This is simply NOT true. There are so many options for different types of loans, and different down payment options. The most common loan is called a conventional loan. It is offered by all banks and mortgage companies and is the one that most people think you need 20% down for. While 20% down is required, the bank or mortgage company you go through will offer mortgage insurance to allow you to avoid bringing the full 20% to the closing table. Below is a link to a PMI calculator which lets you see, based on the price of your home purchase, how much your PMI would be on top of your mortgage per month. Today, the most common down payment is about 7% on a conventional loan.
There are also types of loans that you must qualify for where you can put even less than 5% down. Ask your lender about these loans: FHA, RHS, VA
FHA typically requires 3.5% down
USDA loans can go as low as 0% down, but again, you must qualify. These loans are VA, RHS, and others that may target your specific career. Many opportunities are available, you just have to go looking for them!
Needing 20% down is a myth!!!
For more information visit the link below, The Mortage Report is a great resource!
For any other questions regarding your specific situation, or anything real estate related, Feel free to give me a call!