Just the Facts!
Most parents do not put a lot of credence in the statements “Everyone is doing it.” and “No one does that anymore.” They will dig a little deeper and get the facts of the situation. Interestingly, when it comes to buying a home, similar common myths continue to prevail surrounding what it takes to buy a home.
One of the most common myths is that it takes 20% down payment to get into a home. Certainly, an 80% mortgage might have the most favorable interest rate. It won’t require mortgage insurance and qualifying requirements might be a little less but there are definitely alternatives.
“88% of all buyers financed their homes last year and consistent with previous years, younger buyers were more likely to finance their home purchase. In 2018, the median down payment was 13% for all buyers, 7% for first-time buyers and 16% for repeat buyers.” Stated by the 2018 NAR Profile of Buyers and Sellers.
Qualified Veterans are eligible for zero down payment, 100% mortgage loans without mortgage insurance.
Conventional loans are available with as little as 3-5% down payments.
FHA mortgages have a 3.5% down payment.
USDA mortgages for rural housing have two major products: one does not require a down payment and the other has a 3% down payment. Maps, based on population numbers, are available to determine if the area you are interested in purchasing in is eligible for a USDA mortgage.
We are conditioned to believe that facts can be instantly verified by searching on the Internet. Unfortunately, there are a lot of things on the Internet that are questionable and certainly, that includes some information on mortgages. Specifically, some loans are not available in certain areas and some are not available to individuals based on their income and credit history.
The best approach, when it comes to buying a home, is to get the facts from a knowledgeable and trusted loan professional before you begin the home search process.
Contact a Real Estate Advisor | REALTOR®from Martin Real Estate Advisors Group | United Real Estate at (469) 262-5411 for a recommendation.
A website may or may not provide relevant information for your individual situation. Purchasing a home may be the single largest investment you make in your lifetime and taking the time to find out the facts will be well worth the effort.