Do you need 20% down to buy a home? NO!
A recent pole by the National Association of Realtors showed that 39% of people still believed that they need 20% or more down in order to buy a home.
That same pole showed that 84% of people were not aware of programs that can actually help you buy a home with one percent or less down.
- Down payment: So, what do you actually need in order to purchase a home? So far in 2017 59% of home buyers used a Federal Backed loan that allows you to put 3.5% of the purchase price down. So, on a $300,000 home you would expect to put $10,500 down.
- Closing costs: On top of your down payment you will have closing costs. Closing costs are generally title fees, impounds for insurance and taxes, as well as your lenders commission. A good rule of thumb is 2% of the purchase price. There are a few things to consider however like lender credits and sellers credits which will allow us to help cover these expenses or creatively put these fees into your home loan.
- Fico Scores: Another surprise was that most people thought that they would need higher credit scores in order to buy. Currently, the Federal Loan (FHA) that we discussed requires a 620 in order for you to qualify.
- Government programs: There are actually programs available for home buyer that can purchase a home with 1% down or less. CalHafa is a great program that I have been using since 2015. In order to qualify I need to know how many people are in your house hold, and what your house hold income is.
To see if you qualify for this program and to see how Jessica & Ryan closed on a home for just $126.26 go [HERE]
Will this be your first time buying a home? If so, you should consider checking out some of our other articles:
ABOUT THE AUTHORS: THIS ARTICLE "Again....you do not need 20% down to buy a home" WAS PROVIDED BY GLENN TOMPKINS. A REALTOR IN THE SACRAMENTO AREA. MY TEAM OFFERS OVER 30 YEARS OF COMBINED EXPERIENCE, SO IF YOU’RE THINKING OF SELLING OR BUYING, I’D LOVE TO SHARE OUR KNOWLEDGE AND EXPERTISE.
I service the following Folsom CA, Roseville CA, El Dorado Hills CA, Rocklin CA, Lincoln CA, Granite Bay CA, Carmichael CA, Orangevale CA , Fair Oaks CA, Elk Grove CA, Rancho Cordova CA, Sacramento CA & more.
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