Debunking the 20 Percent Down Myth and How Buying a Home May be Within Reach
Getting the cash to hand over at a house closing can be difficult for anyone, but especially for first-time buyers. Everyone who’s begun, or even thought about, shopping for a home has heard that 20 percent down is the key number. Many people wanting to transition from apartment living or moving out of their parent’s house to owning a home have doubts about being able to do it.
The truth is plenty of home loan options exist with as little as three percent down. ABOVE, the RE/MAX Magazine released an article detailing the ways that someone having doubts about saving for a down payment could still become a homeowner.
The National Association of Realtors (NAR) findings in a 2018 study reported that 13 percent of first-time buyers said the most difficult step in the home buying process was saving for a down payment.
ABOVE reports that some of that difficulty may stem from not knowing what’s possible.
“Mortgages are not one size fits all,” said Ward Morrison, President of Motto Franchising, LLC. “The right loan originator will understand your unique situation and work with you to find you the best option. Just like homeownership, the journey to a down payment looks different across the country based on local home prices, the types of loans you qualify for, competition and opportunities.”
Plenty of options are available, like receiving a gift of money from a family member who’s fortunate enough to lend it to you. (This comes with extra steps that should be discussed with your realtor and lenders.) There are also USDA loans with income and purchase price limits that buyers can research for rural areas, VA Home Loan programs, and even grants available for some first-time homebuyers.
This is a lot of information to undertake and the best way to navigate through it is to find a top-notch realtor who already knows the business. Find one today from RE/MAX Select Realty by clicking here!