How Much Do You Need for Your Down Payment?

How Much Do You Need for Your Down Payment?

Do you know how much you actually need for your down payment? As you set out on your homebuying journey, you likely have a plan in place, and your'e working on saving for your down payment.

Many think the magic number is 20%, that's what was required back in 2005. 

Freddie Mac says: "The most damaging down payment myth- since it stops the homebuyer process before it can start- is the belief that 20% down is necessary"

What Does This Mean for You?

While a down payment of 20% or more does have benefits of keeping your monthly mortgage payment down, the typical buyer is choosing to put far less down. That’s good news for you because it means you could be closer to your homebuying dream than you realize.

If you’re interested in learning more about low down payment options, there are several places to go. We have lenders we work with that would be more than happy to help explain pros and cons of down payments.

There are programs for qualified buyers with down payments as low as 3.5%. There are also options like VA loans and USDA loans with no down payment requirements for qualified applicants.

If you’re interested in learning more about down payment assistance programs, information is available through sites like downpaymentresource.com. Be sure to also work with The Orr Team from the start to learn what you may qualify for in the homebuying process.

Bottom Line

Remember: a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect to start the conversation and explore your down payment options.

Lamont "Ben" Orr - The Orr Team eXp Realty 720-425-3365

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