A down payment can cost an arm and a leg, but not necessarily. Here’s the truth about your down payment options.
There’s a pervasive myth out there that says you need 20% down to buy a home. However, it’s simply not true. There are many different down payment options, ranging from 0% down to 20% down or more. It all depends on what fits your current needs.
If you’re a first-time buyer who wants to keep as much cash in the bank as possible, a 0% or 3.5% down option is probably the best for you. If you’re a retiree who wants to have the lowest possible monthly payment and highest possibly equity, you probably want to put down 20% or more. If you have a little saved up but also want to keep some cash in the bank, then you’d go with the 5% or 10% option.
“There are options for every type of budget.”
As far as 0% options go, the most popular are the VA loan and the first-time home buyer VHDA loan.
So no, you don’t need 20% down to buy a home. You have plenty of options. If you’d like to learn more or have any questions about your personal situation, feel free to reach out via phone or email. We’d love to hear from you.
