Debunking Down Payment Myths

    A lot of people have an inaccurate idea about how much money is required for a down payment on a home. Make sure you know the facts.

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    Today I’m going to debunk some common myths about down payments.

    I was looking at some statistics that were done by Realtor Magazine and Freddie Mac, and the results were staggering. I want to make sure that you and my other clients can make informed decisions in today’s market.

    The question that non-homeowners were asked is, “What percentage of the sales price do I need to put as a down payment on a house?”

    • 39% of people believe you need to put 20% or more as a down payment.
    • 26% of people think that you need put 15% to 20% down.
    • 22% think that the figure is closer to 10% to 14%.

    If you really look at what it takes to purchase a home, there are state programs that do down payment assistance and low down payment programs.

    • FHA loans ask for 3.5% down.
    • With conventional loans, you can go as low as 5%.
    • Portfolio lenders have special products for a certain amount of time that will do low down payment programs.
    • Veterans have the option to put 0% down if they have their VA certificate.
    • If you’re buying in a rural area, USDA loans can reduce your down payment to 0%.

    Looking at those numbers, 87% of people believe that it takes way more money to put down on a house than what is actually true.

    I want to make sure that my clients have the best information. If you’re thinking about buying or selling in this market, give me a call. Let’s have a conversation. Tell me how much money you’re working with, or if you have no money but good credit, or if your credit is bad and you want to save up for a down payment. Let’s sit down and talk about what it’s going to take to get you on a path to homeownership.

    There are a lot of steps in buying and selling a home, as well as in preparing to buy or sell. I always like to say that the one step you need to remember is to give me a call, and I’ll help guide you through the rest of the steps.

    I look forward to hearing from you!

     

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