Gigantic Down Payment Required?
You know, we’re always saying, “Buying a house is a big deal.” Which means, there’s probably a lot of misinformation not far from that big deal! We talked with our preferred lenders and together we can expose the top myths when it comes to buying a house. For example, we busted the myth about the lowest rate not necessarily being the best rate. AND, we tackled the myth that you don’t have to have a perfect credit score to buy a house.
Myth 3: You need to have a gigantic down payment to buy a house.
Not true. In fact, the down payment required to buy a house varies based on the loan program you use. And the percent varies anywhere from 0% to 20%+. There are a LOT of programs, too many to mention. Here are some of the more popular ones that we know about:
USDA offers a 0% program in some rural areas, however there are income restrictions
FHA offers a 3.5% down payment program, some restrictions apply
VA loans offer 0% down payment options to veterans.
Most banks have different types of loan options based on income, location, federal funding, etc.
For example, at the time of this writing, Wells Fargo offers a 3% down payment conventional product. They also have a 2% down payment option if you qualify with a lower-income.
Our guy at Home Services Lending also has a conventional product that allows a 3% down payment. With his program you can pay the FULL down payment from a gift. He can also help borrowers with a credit score as low as 600 on their FHA program.
Sometimes, we even know about free money programs available.
These aren’t always guaranteed because they rely on local, state or federal funding. Ask any of us what we know – the sources constantly change but maybe there’s some free money waiting for you.
If you have 5%, 10%, 15% or even 20%+ for a down payment – there’s good programs for you too. We just thought it was important to expose the myth that you must have a gigantic down payment to buy a house. Because you don’t. And, if you’d like to talk about getting started with the house hunting, we’re here for you anytime.