Low Down Payment? We Have That.

Filed under: Market Comentary

It is interesting to see the patterns in questions that we receive. Often, customers are asking about the same things, and a popular topic this week has been about low down payment options. So, I wanted to share a few thoughts and let you know that it is possible to buy a home, even if you haven’t saved for a down payment.

Common Myths about Down Payments

If you remember a post a few weeks back, I shared the statistic that 80% of potential home buyers thought that you need to put at least 10% down or more on a home. So, on a house that is priced at $450,000, potential buyers assumed that they needed $45,000 as a down payment, plus the closing costs. But, the reality is that a down payment can be quite a bit less than that.

Low Down Payment Options

There are a handful of low down payment options that you might consider. We can help you compare options, and these are some of the simple solutions that might work for your situation:

  • 5% and 5% for conventional loans, and most people will be in a position to qualify for these loans. Straight conventional loans are pretty basic, although there are some factors that need to be considered, such as credit problems.
  • 3% for first-time home buyers on a conventional loan, with a few limits on the size of the loan.
  • Grant and down payment assistance programs are available for FHA and conventional loans. These solutions will get you to a zero percent out-of-pocket down payment. In a lot of cases, these options even cover the closing costs as well. If you receive down payment assistance on a grant, there is a possibility that you don’t even have to pay back the amount.
  • Veterans have benefits through VA loans, which offer no down payment funding to make home ownership a reality for people who a veteran or active military.

With all of these options, there are lots of conditions that could apply. But, our expert team can help you compare the loan types to help you find the right solution that matches your needs. Even though there are conditions that need to be met, you might be surprised to see how many people can qualify for these mortgages. We do these types of loans regularly here and would love to help you with the same financial solutions.

As you can see, it doesn’t mean that you can’t buy a house if you don’t have a lot of cash. Talk to us at Franklin Loan Center see if these mortgage options will work for you!

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
For questions or concerns please email info@franklinlc.com