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Thursday, May 4, 2017

Can You Buy a Home With a Low Down Payment?

The biggest concern for many people when it comes to buying a home is coming up with the cash for a down payment. If you're in this camp, consider these options.

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If you're looking into buying a home in the Phoenix area, the down payment tends to be the biggest obstacle. A recent survey found that 55% of respondents said they couldn't come up with the cash to qualify for a home loan. The continuing growth of home prices certainly isn't helping. More people are choosing to rent since they feel they don't have the money to buy a home.
Not too long ago, it seemed that anyone with a pulse could get a mortgage, but that's not the case anymore. If you have decent credit and steady income of about two years, though, there are a number of loans you might qualify for:
  • USDA loan: This is a zero money down loan with lenient credit requirements that's valid for homes in certain rural and suburban areas.
  • VA loan: This is a zero money down option for anyone who has served in the military and has low closing costs and low interest rates.
  • FHA loan: This loan requires 3.5% down, but that's far less than conventional loans.

With decent credit and steady income, there are many loans you might qualify for.
As you can see, there are plenty of options even if you're in that 55% of people who list the down payment as the No. 1 reason you're not able to buy a home. If you have any other questions about financing options or buying a home here in the Phoenix area, give me a call or send me an email soon. I'd be more than happy to help.