Saving-up to buy a new home? Homebuyers will be happy to learn that, when it comes to down payment amounts, don't believe the hype. You actually don't need as much money for a down payment as you might think.
According to U.S. News & World Report, putting less than 20 percent down on a home is actually OK with most banks. In fact, most finance experts agree that there are numerous programs available that can help homebuyers buy a home for less than 20 percent down.
“While you're figuring out how to finance your home, don't forget that your state may have loan programs to help homeowners - especially first-time buyers,€? U.S. New & World Report notes.
And at FreddieMac.com, there is more good news: “The latest statistics for 2014 are also encouraging. They show more than one in five borrowers who took out conforming, conventional mortgages this year put down 10 percent or less.€? Additionally, homebuyers with a good credit history can expect to make a down payment of just five to 10 percent!
FreddieMac.com reports that qualified borrowers can look at many creative ways to reduce the amount of funds required for a down payment, including grants and loans from non-profit and public agencies, and down payment assistance programs like CHF Platinum Program and California Homebuyers' Down Payment Assistance Program (CHDAP). Additionally, there are government loan programs, like FHA that offer down payment options as low as 3.5 percent and VA loans with no down payment requirements for qualified veterans.
How do you get started? Ultimately, the key is to partner with a mortgage company that is well-versed in a variety of loan programs.
At McCaffrey Home Mortgage we pride ourselves on working with you to make your mortgage and home-buying experience as easy and efficient as possible. Our specialists will listen to you to understand your needs and help you find the loan program that best fits your budget and dreams.
We would love the chance to sit down with you and work to find a down payment solution! You'll be surprised how quickly you can afford the home of your dreams with our low money down programs.