Friday, February 7, 2020 / by Andy Mandel
Today we’re going to discuss down payments. How much money do you have to put down to buy a home? There’s a huge myth that you have to put down 20% to get a mortgage on a house. That is completely incorrect; that’s the old-school way.
You certainly can put 20% down, and there are many upsides to doing so, but it’s not required. There are two main pros of putting 20% down on a property. First, you’re financing a bit less, so your mortgage payment will be smaller. Also, you avoid PMI or private mortgage insurance. Commonly, on an average loan, it’s around $150 per month.
However, 50% of homebuyers put down 10% or less when they buy their home. It’s much more affordable than you think to buy a house. There are even mortgage options with as little as 3% down for qualifying borrowers, and 0% down if you’re a VA buyer. There are many lower payment options to help you get into a home with less money. Each option is specific to your needs.
Of course, you still have to qualify for the mortgage; they’ll check credit, bank statements, tax returns, and so on. The days of essentially “mortgages for everyone” are long gone.
If you have questions or are considering buying a home and need to know how much you’ll need to put down, give us a call or send us an email. We’re also more than glad to put you in touch with an excellent mortgage lender. Let us know how we can help you.