Three questions to ask before purchasing a home!Getting started on the right foot makes the homebuying purchase an easier decision! Knowing what you want, why and what you can afford makes
How Much Down Payment Do You Need
Down Payment Problem - Are You Sure?
There is increasing difficulty for first-time home buyers to save for their down payment as indicated in the graph. Several factors that contribute to this trend include rising rents, rising home prices, student loan debt and flat wages.
Some would-be buyers feel they cannot buy a home today but a large part of those decisions may be based on inaccurate assumptions.
Nine out of ten non-owners believe they need ten percent or more for a down payment. The typical down payment for first-time buyers is six percent. VA has 100% loan programs as well as USDA for certain qualifying areas and buyers. FHA is known for 3.5% down payments. And FNMA and Freddie Mac have down payments as low as 3% and 5%.
There are gift provisions available for buyers who have an “angel” who would like to help them with their down payment.
There are ways to borrow against a person’s qualified retirement program for a down payment. It isn’t necessarily limited to the buyer but could include a relative. Interestingly, a son or daughter can borrow against their retirement to benefit their parents.
In some respects, having good credit and sufficient income is more important than the down payment. Don’t rely on “common knowledge.” Get expert advice and counsel to see if there is a way to advance your dream of owning a home.
Contact us today to get more information!
Latest Blog Posts
Calling all Johnson County Car Enthusiasts....What an incredible opportunity to find this rare CLIMATE CONTROLLED 42 x 54 outbuilding to suit any car aficionado! It sits on 5.64 M/L acres