Title: Importance of a Down Payment
Today we are going to share with you some tips we have as it pertains to mortgage down payments.
You have probably heard this since you were a child, but, save, save, save! It is recommended to start saving for a down payment as soon as possible. You could put any tax refunds or work bonuses in your “down payment” fund. It is common to put down 20% as a down payment, but many lenders will accept much less. There are some first-time home buyer programs available where you can put as little as 3% down! It is recommended to put down as much as your bank account will allow. If you put down less than 20%, you may have higher costs. There are many down payment calculator resources available that can help you figure out what your down payment goal should be.
If you have trouble coming up with a down payment, you have a few options!
-Conventional mortgages. These mortgages conform to standards that are set by government-sponsored entities. These mortgage require as little as 3% down.
-FHA loans. These loans are insured by the Federal Housing Administration and require as low as 3.5% for a down payment.
-VA loans. These loans are guaranteed by the Department of Veterans Affairs. There are cases where a down payment is not required at all.
Some states offer assistance programs for first-time home buyers. Some of these programs assist with your down payment or closing cost or even help you with tax credits or discounted interest rates. Get in touch with your county or municipality to learn about these first-time home buyer programs.
Remember, the higher your down payment, the lower your monthly mortgage payment. A thirty year fixed mortgage will help you obtain the smallest mortgage payment possible.