If you answered anything higher than ZERO, your answer is wrong!
Would it surprise you to learn that most people can get a mortgage with a great rate with just 3.5% down, and in some cases, zero down? For most people, it is about the same amount of money you would spend on the first month, last month, and damage deposit on a rental property… but now, it is your home.
For some strange reason, the myth you need a huge down payment persists. It simply isn’t true, yet I hear it all the time. I think it is because we hear it on TV. I know I have. This is mostly from the talking heads on either coast. Many of those areas are what is known as “high cost” locations. Anytime you go over $417,000 – you are now a jumbo loan, and jumbo loans are typically 20% down. But for the rest of us… Heck no, just 3.5% down!
- FHA Loans are very popular, and only require 3.5% down
- Good credit conventional loans only require 5% down
- VA loans are zero down
- USDA rural housing loans, for rural parts of the country, are zero down
- Community programs can many times be used for your down payment to effectively get you zero down
Don’t let misinformation derail your dream of home ownership. Contact a local licensed mortgage professional to get pre-approved today. Once approved, contact a great Real Estate Agent to find your dream home!