We are starting a series on Busting the Myths of Home Buying and setting the record straight. Whether you have purchased a home or not, there are so many misconceptions out there. Be sure to check them all out. You might be surprised that buying a home may be easier than you think.
Myth #1: You need 20% for a down payment
Reality: You can put 20% down, but you can actually put as little as 3% down. In 2017, according to Fannie Mae, the average down payment for first-time home buyers was 5% and 10% for repeat buyers. There are different loan programs that help people buy a home with less cash out of pocket. Even with steady income, it may be tough to come up with a down payment. Also, many potential buyers are unaware that their down payment can come from sources other than their personal savings. You may be able to use gift funds from your family or employer, grants, or other sources. There are even some loans that are 0% down such as USDA and VA loans. If you qualify, this can take a big chunk off the amount of cash you have to bring to the closing table.
If you are thinking about making a move, but aren’t sure about your finances, I highly recommend talking with a mortgage lender to learn about different loan programs that may be available to help keep cash in your pocket. I have some great professionals I can put you in touch with today.
Stay tuned for more home buying myths.