Are you finally ready to have a home to make your own? Maybe you are tired of scraping your icy windshields every morning before work since your current housing situation doesn't have a garage. Or maybe you are a pet owner and want your own personal backyard for your furry friend to run free. Whatever the reasons, we totally get the desire to move from renting to homeownership. But we also understand the struggles that can hold you back, such as down payment worries.
Let's answer some common down payment questions to help alleviate common concerns that can come with affording a home.
Do I need 20% down to buy?
You do not need to put 20% down when buying a home. However, if you can put 20% down you avoid paying private mortgage insurance.
Can I buy a home if I haven't saved much for a down payment?
Saving for a down payment to purchase a home can be challenging - especially if you have student loan debt, a car payment, and are paying the high costs of rent. But there are mortgage options available that require low down payments, and assistance programs to help with both down payment and closing costs.
Can down payment assistance be used with any type of mortgage?
You may be able to use certain "flexible funds" to help cover your down payment or closing costs when purchasing a home. Examples of flexible funds include those given to you as a gift from a family member, a grant from a source such as GROW South Dakota, housing finance agency or nonprofit, or even funds provided by your employer. We can help you understand what funds are available.
Is down payment assistance available only to a small number of homebuyers?
According to a report by RealtyTrac® and Down Payment Resource™, more than 87% of homes in the United States could qualify for down payment assistance. It's important to do your research and discover what's available in your area.
How do I find out what down payment assistance programs are available where I live?
With more than 2,300 down payment assistance programs available throughout the country, many options may be available, but you'll have to do some research. Use the internet to search for down payment assistance options, consult your local housing finance agency, ask your real estate professional, or ask the experts at CorTrust Mortgage.