How To Get Your Down Payment FundedJonathan
As we see home prices rise, home buyers (especially first-home buyers) need to determine how they will get funds for their down payment. Traditional loans require a 20% down payment, however there are other programs that do not require this large amount. VA loans require zero down payment, and if you qualify FHA loan down payments can be as low as 3.5% down. If you can’t do 20% many lenders may require private mortgage insurance (PMI) on the loan.
Here are typical sources of down payments
Savings – If possible, you should start saving for the down payment a few years in advanced.
Gift Funds are used by many people as well. A friend, relative or employer may help you with assistance towards the down payment. If you do this, its important to keep records of the gift and your lender may ask for a signed gift letter to certify the funds were a gift.
Inheritance is also a common source , note that funds must be available prior the loan closing.
Programs and Grants
There are a number federal, state and local down payment assistance programs that may be available to provide down payment assistance.
Its best to contact us and we can review your situation and see what program best fits your needs and what you may qualify for, so click on our online prequal for more!