down payment Tag

4 Jan 2019

Buying a home? Learn about your down payment options now

Lack of savings and the inability to outlay any cash for a down payment continues to be the biggest hurdle facing first time home buyers. Unfortunately, many would-be buyers incorrectly assume they must come to the closing table with a hefty amount of money, and as a result, they continue to delay homeownership. Yes, lenders love to see buyers put 20% down, but they also know that amount of money is very difficult for first-time buyers to amass. Just to give you a baseline, in 2018, the median down payment was 13% for all buyers and 7% for first-time buyers, according to the National Association of Realtors. So if you’re considering buying your first home but stopped your search when you came...
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28 Apr 2014

An unconventional approach to home mortgage

While buyers are active once again in the marketplace, many are not carrying a large purse or wallet. Most buyers who are shopping for a home today are looking to get in without a large down payment. Traditionally, these buyers would consider a government loan, either FHA, USDA or VA financing. While these are great options for some buyers, these types of loans have income limits or property requirements, or are only available to those who have served or are currently serving in the Armed Forces (VA). A more unconventional option for today’s buyer is conventional financing. This type of financing is available through FNMA and Freddie Mac and allows loans up to $417,000 in loan amount. While this was once a...
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18 Nov 2013

Down payments in today’s real estate market

With interest rates settling down, the housing market is seeing continued activity from first-time homebuyers, who typically make up about 40 percent buyers. In addition to inquiries about credit requirements, the most common question from first-times is “How much down payment do I need on my first home?” There are a variety of great options that first-time homebuyers can and should consider, to get them into that first home. For buyers with a good credit score who have their own 5 percent down payment saved, the most affordable option may be a conventional loan with Private Mortgage Insurance (PMI). For this loan, you will be required to provide 2 months of bank statements to indicate that (1) you have the money...
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