Freguently Asked Real Estate Questions-Ep. 9

Do I need a 20% down payment to buy a home?

Nope. There are options. The media makes it sound like getting a mortgage is next to impossible these days, but that is just not true. If you provide the information your mortgage lender needs up front, the process will be less stressful. There are many financing options out there, but I want to highlight just a few in this post.

FHA financing allows you to put as little as 3.5% down. The maximum loan amount for a single family home is $271,050 for FHA. So if you are planning to buy a home for around $280,000 or less, check out this option when you are getting pre-approved to purchase.

VA financing still allows you to put ZERO down. You usually know if you are eligible for VA benefits or not, but if you are wondering check out www.vba.va.gov to find out more.

Conventional financing will allow you to put as little at 5% down, but you will have to pay a higher monthly mortgage insurance premium than you may like, but the option is still available.

I encourage you to meet with a professional mortgage lender to explore all your options if you will be thinking of buying a home soon. Know that you do not have to have a 20% down payment to buy your next home. If you need a referral for a great lender just call, email, or text me, I know some really great ones that I would be more than happy to refer you to.