How much do I need to save?
Down Payment (noun): the amount of money you spend upfront to purchase a home.
It is usually combined with a mortgage to fulfill the total purchase price of a home.
How much should I save?
First, take a deep breath. Many buyers stress over the down payment but with the many different options available, there will be a perfect fit for you. You will typically need 5 to 20 percent of the sale price in cash but with new FHA programs you can put as little as 3.5 percent down and don’t forget about USDA’s 0 percent down for qualified buyers!
Are you a veteran, active military member, National Guard, or reserves? Then you could qualify for a loan with 0 percent down! There are many options for first-time homebuyers or borrowers with lower incomes, just ask vLoan for help! We will point you in the right direction, promise.
Still worried? Don’t be!
Saving for a down payment is still considered to be the number one reason buyers shy away from purchasing a home. Many people don’t realize all of the loan options that they have or that there are more than 1,000 down payment assistance programs in the U.S. that will help you get in your home, sooner. Check out these three programs: Below-market first mortgages, down payment assistance program, and tax credit or mortgage credit certificate (MCC). One of these programs can put you on the road to homeownership!
Feel more comfortable talking to a mortgage banker? Chat or call ours today! They will answer any questions you may have, we’re here to help.