You do not need 20 Percent down to purchase a home!!
Recently I was speaking with a Realtor who retired from the business a few years ago. She asked how business was and said "It must be tough for buyers, since they need a 20% down payment to buy a house." I had heard this occasionally before, but when I heard from an experienced Realtor I decided it was time to write about this. Over the past several years the mortgage process has tightened and has become more difficult. However, if you have a good credit score (as low as 580 for FHA loans) you can get a mortgage. Most of my buyers in the past few years have not had 20% down, and many have had only 3.5% down. I even did one purchase where the financing was for 100% of home price. So if your credit is decent, your debt to income ratio is good, and you are employed, chances are you can purchase a home. With rates for a 30 year fixed rate mortgage below 4%, now is a great time to buy. If you have any real estate questions, or need a recommendation to a great mortgage broker, please don’t hesitate to contact me.
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