You Don't Need 20% DOWNPAYMENT!

You Don’t Need 20% Down to Buy a Home: The Truth About Down Payment Options 1 - 📅 Email - [email protected] 2 - 🌐 Apply Online - http://bit.ly/easyloanapp 3 - 📞 Call/Text - 385-250-1411 🔴 Subscribe for more tips just like this: https://www.youtube.com/channel/UCgi_... ------------------------------------------------------------- Other Videos you may like: ○ Inside the Closing Disclosure:    • INSIDE the CLOSING DISCLOSURE: What Y...   ○ FHA Pros and Cons:    • FHA Loan Pros & Cons - Great info for...   ○ USDA Loans (0% down loan):    • Mortgage Tip: USDA Loan Update for 2022   ○ Temporary Rate Buydown 3/2/1 2/1 1/0    • Utilizing Seller-Paid Closing Costs f...   ○ Assuming a FHA Loan:   • How to Assume a FHA Loan   ○ PMI Buyout:    • Utilizing Seller-Paid Closing Costs a...   ○ Should I buy down my rate:    • Mortgage Tip: Should I buy down my Mo...   SOCIALS ________________________________________ https://superiorlending.net/   / superiorlendingassociates   https://www.instagram.com/superiorlen...   / milespitcher   NLMS 103819/3152 One of the biggest myths in home buying is that you need a 20% down payment to get approved for a mortgage. While putting down 20% can help avoid certain costs like private mortgage insurance (PMI), it’s not a requirement. Let’s look at alternative paths to homeownership that may work for you. Where the 20% Myth Comes From Historically, lenders favored a 20% down payment because it reduced their risk; it showed that the borrower had equity in the home and was less likely to default. However, with the wide range of loan options available today, putting down 20% is just one option among many. Alternatives to the 20% Down Payment Various loan programs offer lower down payment options to make homeownership more accessible: 1. *Conventional Loans with 3% Down* Many conventional loans allow as little as 3% down, particularly for first-time or low- to moderate-income buyers. 2. *FHA Loans with 3.5% Down* Insured by the Federal Housing Administration, FHA loans require just 3.5% down, making them a popular choice for buyers with lower credit scores. 3. *VA Loans with 0% Down* Eligible veterans and active military personnel can access VA loans, which require no down payment and come without PMI. 4. *USDA Loans with 0% Down* If you’re purchasing in certain rural areas, you may qualify for a USDA loan, which also offers a zero down payment. 5. *Down Payment Assistance Programs* State, local, and nonprofit programs often provide grants or low-interest loans to help cover down payment costs. The Role of Private Mortgage Insurance (PMI) When you put down less than 20% on a conventional loan, PMI is typically required. While it’s an added expense, PMI allows you to buy a home with a smaller upfront payment, and it can often be removed once you reach 20% equity through payments or appreciation. Why Consider a Lower Down Payment? Choosing a smaller down payment has several benefits: **Faster Homeownership**: Waiting to save 20% can take years, delaying your ability to build equity. **More Savings**: Putting down less frees up funds for other financial priorities. **Lower Barriers in Today’s Market**: With historically low interest rates, even financing a larger portion of the purchase price can be manageable. Potential Risks to Keep in Mind While a lower down payment has advantages, be mindful of: 1. **Higher Monthly Payments**: Financing more means a larger loan amount and higher monthly payments. 2. **PMI Costs**: PMI can increase your monthly payment temporarily but will eventually end once you reach enough equity. 3. **Market Volatility**: If home values drop, you could be “underwater” on your loan, but staying long-term can mitigate this. How Much Should You Put Down? The ideal down payment depends on your financial goals. If you can comfortably save 20%, you’ll lower your monthly payments and avoid PMI. However, if a 20% down payment would delay your plans for years, there are plenty of options to buy with less. Bottom Line A 20% down payment isn’t required to buy a home. With a range of mortgage options, many buyers can put down significantly less and still achieve their homeownership goals. Connect with a mortgage professional to discuss your options and determine the best path for you. Homeownership might be closer than you think. #downpayment #pmi