Mortgage Myth # 2 A 20% Down Payment is Required To Get a Mortgage
A common mortgage myth that exists is that only potential borrowers who have 20% or more as a down payment can get a home loan. Whereas there are certainly some great mortgage products that require borrowers have a 20% to use towards their down payment, it is not necessary in order to get approved for a loan.
An excellent tip for today’s home buyer is to figure out the amount of money they are working with for a down payment and then find a program that will accept what your individual circumstances are. There are mortgage programs available to buyers who have down payment ranging from 0% to 20% or more.
Many Home Buyers have a hard time that they can potentially buy a home with no money or very little. There are some great mortgage products for those buyers who may not have much money saved.
It is important to know that there are PRO’s and CON’s of buying a home with a small down payment. It is recommended that potential home buyers discuss with an experienced mortgage broker or lender to see which option will be the best fit for them.