18 Dec Monday Minute
The National Association of Realtors completed a home buyer profile in February 2017 that revealed some interesting information regarding down payments: 39 percent of respondents who didn’t own a home thought they needed a minimum of 20 percent down before they could buy a home. Twenty-six percent thought they needed 15 to 20 percent, while another 22 percent thought they needed 10 to 14 percent down.
The 20 percent figure has been a long running myth in the mortgage industry. Millions of homeowners across the country have benefited from low- and no-down payment mortgages. Although the majority of mortgages available on the market today require some form of down payment, lenders don’t use your ability to make a down payment as a primary reason for approving or denying your loan application.
Locally we have access to a Zero Down Payment with USDA loans in Guadalupe and Nipomo. If you are a Veteran, you could use a VA loan for no money down and if you are a California Veteran, you have access to Cal VA a program similar to VA but for Veterans who live in California. FHA is another program you can use even if you currently own a home which only requires 3.5% down.
There are many options available even if you are not a first time home buyer and even if you currently own a home. If you have thought of buying a move up home and have let the concern of a down payment make you to think this is not possible, call me! We certainly can give you potential options!