The amount you will need to put down when purchasing a home can be one of the most misunderstood parts of the home buying process. Many people still believe that to qualify for a mortgage you must put down 20%, but this is not correct. For buyers who qualify, there are many products and programs that allow for lower down payment options.
Let’s explore some examples:
- First-time home buyer programs that offer lower down payment options
- 100% financing options for VA and USDA loan products
- Conventional programs that offer down payments of 3%, 5%, 10% and 15%
- FHA programs allow for a 3.5% down payment option
You can also explore some other options when thinking about how to obtain funds for your down payment.
Here are some alternate sources to consider:
- Your savings account
- A down payment gift from a family member
- Down payment assistance from a second mortgage or grant
- A loan against an asset that you own
There are strict guidelines surrounding these down payment options, so be sure to check with your loan officer to see if any of these alternate methods will work for you.
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