You Do Not Need 20 Percent Down to Buy Your First Home
While putting 20 percent down payment is not a bad thing, you do not need to. If you would like to purchase your first home now but do not have 20 percent, here are 7 options to get you into your new home sooner than later.
FHA loan: requires a minimum down payment of only 3.5%.
VA loan: requires no down payment. Zero.
USDA loan: also requires no down payment. Zero.
Home Possible mortgage: requires between 3 to 5%.
HomeReady mortgage: requires only 3% down.
Conventional loan: requires 3% down payment with private mortgage insurance. However you will be able to get rid of the PMI once you’ve accrued 20% equity.
So many first time home buyers are not aware of these down payment mortgage options and so they spend years trying to save up 20% down payment when they could not only apply for one of the above mortgage loans, but also apply for down payment assistance program to cover the down payment and the closing cost.
As always, thank you so much for stopping by. Remember, if you or someone you know is thinking of purchasing a first home, please give us a call or Email us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...
