Surprising Options for Low Down Payments

Filed under: Financial Planning

Just because you want to buy a home, doesn’t mean that you need to have a big down payment. Today, I want to look at low down payment solutions that can help you get into a home sooner than you think is possible.

There are down payment assistance programs are designed to make it easier for new buyers to get into a mortgage, and you need to qualify for these options. But, I also want to look at additional solutions that can be used to decrease the down payment if you don’t qualify for one of the assistance programs: FHA and conventional loans. These solutions aren’t bound by income limits, making them available for anyone who can qualify for the loan.

Down Payments for an FHA Loan

Even if you don’t live in a high-cost area, then you can still buy a house. The limit for an FHA loan in Riverside County is $405,950. So, you can buy a home for $420,000 and still achieve their 3.5% down requirements, which covers more than the median home price in Riverside County, and even many properties in Temecula.

Conventional Loans

The down-payment numbers for conventional loans are even more surprising. The lending limit throughout the United States is $453,100. So, with 5% down, you can buy a home that is priced at almost $477,000.

This national limit wouldn’t work for some of the high-cost areas in the state, such as LA, Orange County, and other expensive neighborhoods. In these expensive areas, the conventional lending limit is $679,650. Choosing to put 5% down on this type of purchase makes it possible to buy a house for as much as $715,000.

What is Your Down Payment?

Many people have this idea that buying a house requires a huge down payment. But, there are down payment alternatives that can minimize your out-of-pocket expenses when closing on the property. 3.5% or 5% is a small amount compared to the overall size of the loan. These smaller down payments give you real buying power, helping you get into a home that meets the needs of your family.

Do you want personal recommendations about the best mortgage solutions for your financial situation? Talk to me for more details. Our team at Franklin Loan Center is always here to answer your questions. Don’t forget to share, like, and comment to let me know your thoughts on this topic!

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