What if you don’t have 20% for a down payment for a home?
RICHMOND, Va. (WWBT) - In a recent study, thirty-six percent of homeowners told NerdWallet not having enough saved for a down payment was the biggest thing standing in the way of homeownership.
The general rule of thumb here is a 20% down payment, so if you’re buying a $200,000 home you’d need $40,000.
However, Elizabeth Renter a data analyst and senior writer at NerdWallet says while she recommends 20% - there are other options out there.
“While a 20% down payment will save you in on the life of your loan and prevent you from having to pay private mortgage insurance. There is a mortgage option available that allows you to put less down on a home so, 10%, 5%, or even 3%., Renter said.
FHA loans, for example, may require as little as 3.5% down for qualified borrowers, and some Virginia loans may have no-money-down options for qualified veterans, current military service members, and their spouses.
Bottom line is, don’t give up researching your options - talk to a lender.
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