If you’re hoping to buy your first home, you’re likely trying to plan for all of the costs associated with a home purchase. One of the largest costs is typically the down payment, but that cost may not be as much as you think. Many people mistakenly think that they are required to put 20% down, but in most cases that is not true. There are many loan programs available that require significantly less. This is great news, as it makes homeownership much more attainable!
An assortment of low down payment programs are available to assist home buyers in their journey. Federal Housing Administration (FHA) loans typically require a down payment of only 3.5% of the home’s purchase price. Also, U.S. Department of Veterans Affairs (VA) loans provide eligible veterans and active-duty military personnel with the opportunity to purchase a home with no down payment at all. Similarly, USDA loans have no down payment requirements for qualified applicants.
There are also lots of down payment assistance programs, and they aren’t just for first time home buyers. According to Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments. That same resource also notes:
“You don’t have to be a first-time buyer. Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years.”
If you want to purchase a home now or in the future and want to understand what costs you should plan for, including the down payment, and what loan programs or down payment assistance programs you’d qualify for, get in touch! Our team of experts is here to help you get ready to begin your homebuying journey.
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