Many people think they can’t buy until they’ve saved an 10 percent to 15 percent downpayment, according to research from secondary mortgage market giant Freddie Mac.
The truth is, you can buy a house with nothing down if you’re eligible to use a Veterans Affairs (VA) loan or the U.S. Department of Agriculture’s (USDA) rural housing loan program.
Or, you can buy with just 3.5 percent down using an Federal Housing Administration (FHA) loan or 5 percent using a Fannie Mae or Mac loan.
Local homebuying programs, which offer grants, low-cost loans and other financial assistance, can further reduce the cash you need to bring to the closing table.
Need a mortgage that’s higher than the loan limits for FHA, Fannie Mae, or Freddie Mac?
You may still be able to buy with a 10 percent downpayment using a private-sector mortgage loan programs. Some even offer loans to buyers with as little as 5 percent down, says Doug Walker, vice president of sales and marketing for national lender Churchill Mortgage.
While you’re putting off homeownership to save a big downpayment, housing prices and interest rates can rise. Contact me now and I’ll refer you to an experienced loan officer who can walk you through the mortgage process and show you just how little you might need to buy a home now.