So you've read our blog and know getting a pre-approval letter is high on the priority list of buying a home. That letter tells you how much you can afford, but most loans require some kind of down payment before they hand over the cash. And saving that money up can be hard. Here are some guidelines on the amount you need to secure a loan and snag your dream home.
In a lot of cases, home loans will require a 20% down payment, meaning, if the home you want to purchase is $200k, you'd need at least $40,000 down (whoa) to get the financing for the rest of the house. But that isn't always true. There are several types of loans that require much less down, for instance, a FHA loan only requires 3.5%, or, if you or your spouse served in the military, you may qualify for a VA loan, and there's also the USDA loan. And if you've got stellar credit you can get approved for a conventional loan with less than 20% down, but you'll be required to have a special kind of insurance on the home until the loan is paid off.
That being said, there are many options available to buyers now that give them the power to get a house without saving up a huge chunk of change first. Talk with your Realtor today about which you may qualify for, and how to get started!
