What is a down payment?
When you’re buying a house and you’re not loaded, you will be borrowing money. So while you will be the “owner” of your home, you’ll still owe money to whoever lent you enough to buy it. This typically comes from a bank or mortgage lender. The bank or lender is normally going to want to see you put a little skin in the game for many reasons, mainly the fact that you’re less likely to stop making payments and walk away if you have your own money tied up in it.
How much do you need?
That’s a great question, and will vary based on your unique situation. In most cases, YOU DON’T NEED 20%! The minimum is typically 3–3.5% of the purchase price. So if you buy a house for $100,000, you’ll need $3,000-$3,500 as a down payment. If you’re a Veteran or active duty military, you can put $0 down because these loans are backed by the government — meaning if you walk away, the government will guarantee a certain amount to the bank. Jumbo loans require more like 10–20% down, depending on a variety of factors.
What about down payment assistance?
There are some forms of down payment assistance (DPA) out there that will pay your entire down payment up to 5%. These programs are for folks who make less than the median area income and can be great, but you also normally take a higher interest rate and end up paying far more in the long run.
How do I contact you to help me buy a house?
If you want more information about how much you should put down or anything else, PM me or fill an application out online here: http://bit.ly/2nG6Hbg