RENTERS: Down Payments are lower than you think

Mortgage and Lending with CMG Home Loans NMLS 248937

Educate yourself, you probably need less money than you think

Are you renting a home? Would you like to own your own home? What is holding you back?  

According to a recent survey done by the National Association of Realtors:

Only 11% of current renters know they can purchase a home with 5 % or Less as a down payment.

A WHOPPING 89% got the answer wrong thinking you need more than a 5% down payment.

Scarier yet:  Almost 45% of renters believe you need to put at least 20% down to buy a home.

Is this misconception keeping you from purchasing a home?

You probably can get away with a lower down payment than you think, Here are the current minimum down payments available to qualified buyers for common programs:

  • Conventional Loans as little as 3% down 
  • FHA Loans 3.5% down (FHA also reduced its mortgage insurance recently)
  • USDA $0 down.  While this has geographic restrictions and Income caps it is something to consider.
  • VA $0 down. Obviously you need to be a Veteran and have the eligibility. But by far, when eligible this can be the one of the best ways to purchase a home.
  • NJHMFA- First time buyers in NJ can get between $10,000 - 15,000 depending on the market towards your down payment and closing costs.
  • And at CMG we also have other alternative that allow for 100% financing.


Let's put the percentages into real numbers for you:

In my market $400,000 is a pretty common purchase price for a First Time Buyer.  If you are in the 45% of Renters that believe you need 20% down to purchase- That is $80,000.  A pretty daunting number for most. But in reality you may only need $12,000 for a 3% down conventional loan. That is MUCH more attainable. Now pair that with the first time buyer program (in my market we get the $15,000 grant) and you have some change left to pay towards your closing costs.

So why continue to pay your landlords mortgage when you can pay your own?

Please keep me in mind if you are looking for a Mortgage in NJ, I'd be happy to discuss options with you. I can also help guide you in Most other states for a mortgage or an Equity Loan as well; ( Everywhere but UT) 

Give me a call.

Robert Rauf 
Mortgage Loan Originator NMLS# 248937
or my blog: 
Office: (732)908-4868  Cell (732)740-0175

Since 1987 I have been helping my clients fulfill their dream of home ownership! CMG Home Loans  is located at 222 Commons Way Toms River, NJ 08755. NMLS #1820. Visit for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, 

Comments (2)

Roy Kelley
Retired - Gaithersburg, MD

I hope all is going well for you and you will soon be posting again.

Have an outstanding summer.

Aug 05, 2023 07:58 AM
Robert Rauf
CMG Home Loans - Toms River, NJ


Roy Kelley You are right, I need to write a new blog or two!!

Aug 05, 2023 01:11 PM