Can I Buy a House without 20 Percent Down Payment?

Many Americans do not own their dream homes today because they think they’re unable to afford the down payment. People assume they need to put 20 percent down to buy a home. Believe it or not, that’s not the case.

It sounds too good to be true, but you can buy a house with much less than 20 percent down. So, just how much money do you really need to buy your dream home?

According to the National Association of Realtors, the average median down payment has been 5 percent for first time buyers for decades. People don’t realize there are different kinds of mortgage loans that requires less than a 20% down payment.

So, How Low Are You Able to Go?

FHA Loans

The Federal Housing Administration (FHA) mortgage offers down payments as low as 3.5 percent. Majority of the first-time buyers don’t realize that it can be obtained from a financial gift.

VA Loans

The U.S. Department of Veterans Affairs (VA) mortgage offers Zero down payment to the military service members and their families. They are offered by most lenders across the country.

DPA

Down Payment Assistance programs are becoming more well-known by the day. It helps homebuyers get a house without putting down their own money.

Fannie Mae and Freddie Mac Conventional Loans

Fannie Mae loans offer down payments as low as 3 percent. While, Freddie Mac conventional loans offer down payments as low as 3 to 5 percent.

While many believe a 20 % payment is a requirement, you can see that there are loan options available. You don’t need a 20 percent down payment to purchase a house, you may be ready to buy a home today!

If you want a full team of experts to help your decision on what is the best loan option for you, we’re happy to help! Please don’t hesitate to reach out to us, we look forward to hearing from you!