For a long time when buying a home people needed and put down about 20% of the cost of the home as a down payment. But, as prices rose lenders came up with different products and means to avoid having to put 20% down.
Today, there are still some programs that require no down payment, especially for Veterans and those using a USDA loan. Then there are FHA loans and even conventional loans that require as little as 3.5% as a down payment.
These lower limits make it far more manageable for buyers to afford a home. Plus for first time buyers there are also often local programs that might provide assistance in the form of grants or no interest loans that are forgiven that can be used toward down payments. These vary from State to State and even County to County.
This is where using a strong local lender can really help as they know the different options that are available. Many of these are income based, aimed at helping lower income borrowers afford a home of their own.
Of course, all these programs still require good credit, although some will allow lower scores than others.
Some loans can be structured with two mortgages, a primary mortgage at 80% of the value of the home and a second mortgage, similar to a home equity line of credit that helps avoid Private Mortgage Insurance as the primary loan is 80% of the value of the purchase.
Having strong relationships with a variety of different lenders I can help guide you to find the best option so you have the confidence to make the right decision for you moving forward to buy a home. Contact Nick Vandekar, Selling the Main Line and Chester County with Realty ONE Group Advocates, office 484-237-2055, cell or text 610-203-4543, or Nick@VandekarTeam.com, let's sit down and see how I can help you achieve the dream of home ownership.
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