It’s a common misconception that buyers need a 20% down payment.
Today I want to answer a question that a lot of sellers and buyers have been asking recently. How much money does a buyer need if they want to purchase a home?
There are plenty of mortgage options to help buyers purchase a home in today’s market. Depending on the product, we’re seeing down payments ranging from 3% to 25%. It’s a common misconception that people need 20% or 25% down to buy a primary home. The reality is that most buyers are purchasing a property with a 5% down payment.
If somebody’s looking to buy a property for $400,000, they need $20,000 for a 5% down payment. Then they’re going to have closing costs, but we roll that into the offer price and ask for a concession back.
If you’re an FHA buyer, you can get your down payment down to 3.5%. We have some bank partners who are doing a standard 3% down mortgage, and then in some cases, we have other programs that are getting people into real estate with 0% down.
If you want to learn more about buying and want to know what your options are, give me a call or send me an email. I look forward to hearing from you.