How much money do I need to Buy A Home in Gilbert?

I hear this question weekly from my clients: How Much Money Do I Need To Buy A Home in Gilbert?

That is a great question and most times my clients are surprised to hear the answer. Depending on the type of home you buy, the number of other properties you own and your credit history, you may only be required to put 3.5% down on the purchase of a home With an FHA loan program.  There are some loan programs like USDA where you would need no down payment but there are very specific property requirements associated with this type loan and they unfortunately are not available for properties in Gilbert.  Conventional loans are available and require as little as 5%, 10% or 20% of the purchase price for a down payment for a Home in Gilbert. 

What does all that mean to you?  This scenario shows how much money do you need to buy a home in Gilbert assuming a $200,000 purchase price. 

Scenarios:  $200,000 Home in Gilbert

3.5% FHA - $7,000 down payment

5% Conventional - $10,000 down payment

10% Conventional - $20,000 down payment

20% Conventional - $40,000 down payment. 

We Don't Have The Money, What Should We Do?

This gets a little tricky and varies based on your unique situation.  You need to evaluate your goals and make sure you are committed to getting the cash for the down payment.

Most people begin by analyzing their up current spending habits and creating a budget to cut out unnecessary spending to help them maximize their own earnings.  Another option is to take a second part time job to help put that money towards the goal of your down payment.  Some people take money out of their 401k funds, investments or even get the equity out of their cars which they own free and clear.  That cash can then be used towards your down payment.  Another option is to get the funds from a close family member as a gift.  Whichever option you choose to use, be sure to document the details and keep good records for your lending professional. That will help to streamline your mortgage application process and keep the transaction running smoothly.

As a final resort, there are down payment assistance programs available to help you get the necessary cash to close.  You are subject to higher interest rates and other income stipulations but programs  like these have helped thousands of people become home owners!

Want to know more about down payments for Homes in Gilbert?  Call Chelsea Elwood, Realtor and Gilbert area expert with Keller Williams East Valley At (602) 748-6136.

See Homes For Sale in Gilbert and schedule your private showings today!

http://chelseaelwood.kwrealty.com/listings/areas/37929/propertytype/SINGLE/