You don’t need as large of a down payment as you might expect.
Here’s a question that I get asked all the time. “How much money do I need if I want to buy a property?” There are a lot of misconceptions and a lack of awareness of what’s really out there and available to you. I’ll be at a party or I’ll meet somebody that’s renting one of our apartments and they say, “I’d love to be a buyer, but I don’t have the $20,000 down to buy a property.” I tell them that they don’t need $20,000. If you want to buy a property, you can get a much lower down payment option if you have a good, steady job and your credit is in good shape.
How much money do you really need? In today’s market, we are seeing most buyers putting 5% down on average. There are some clients, with a competitive edge, who are putting down 20% or more. That does happen and there are some benefits to that, like eliminating PMI. However, you could buy a property for 5%. That’s pretty typical in today’s market.
We have a lot of clients who are buying a property with 3% down. We’re building their PMI into the mortgage and getting a reduced rate. We also have programs available where you could put down 3% and get $10,000 to help you with the down payment. In some cases, we’re getting people into properties with 1% down.
What I want you to know today is that you don’t need to have 20% to buy a property. In most cases, we’re seeing 5%. Don’t be afraid of entering the real estate market because you don’t think you have enough money.
Give one of our agents a call and we can talk you through all these different programs that we have available to you. We have a lot of great lender partners that have a lot of innovative programs that many people don’t know exist. We can help you navigate that if you decide that you want to buy. I hope to hear from you soon. Have a great day.