Many people still believe you need 20 percent for a down payment to qualify for a mortgage. With student debts and high rent, some first-time home buyers struggle with saving for a 20 percent down payment.
Renters may be able to enter the housing market sooner with multiple loan programs that allow less cash out of pocket. The truth is you can buy a house with a lot less than 20% and not feel like you are getting a low-quality loan program. Qualified borrowers are also able to use gifts from family towards their down payment, further reducing the amount needed from their own pockets.
Many mortgage programs offered by agencies like Freddie Mac and Fannie Mae allow buyers to put down as low as 3 percent to purchase their dream homes. Other program options, if qualified, include VA Loans that require no down payment and FHA Loans that only require a minimum of 3.5 percent down.
Don’t let a misconception stop you from buying your dream home. Learn more by talking with a home loan advisor from GO Mortgage.