Do you need 20% down to buy a home?

By Arizona Home Group

Sell your home fast and net thousands more. We’ll make sure you get the absolute top market dollar for your home. We’ve helped thousands of buyers and sellers over the past 30+ years with over 200 5-star reviews.

Do you really need to pay a 20% down payment when buying a house? Absolutely not, even though people believe that you have to. Today’s housing market offers a range of conventional and government-funded mortgage loan options. Here are three of the most popular loan options you can choose from:

1. FHA loans. This is a government-backed loan that typically requires a down payment of just 3.5%. This is one of the best loan options for most buyers in today’s market.

2. VA loans. Available to veterans and eligible military spouses, VA loans offer the possibility of zero down payments.

3. USDA loans. A government-backed loan that’s designed for rural and suburban areas. Some USDA loans offer zero down payments and have lower mortgage rates for those with lower to moderate incomes.

You can also apply for down payment assistance programs for low-income earners who want to enter the housing market but don’t have enough funds for a down payment. While these loan options and programs offer flexible down payment options, don’t forget that your credit score and debt-to-income ratio affect your mortgage options and interest rates.

If you’re renting and you’re ready to become a homeowner, don’t be discouraged by thinking you need to save a huge amount of money for a down payment. Reach out to us and we’ll walk you through it. We can connect you with one of our trusted lenders to determine the best mortgage option for your financial situation. Call us at (602) 571-3730 or send me an email. Let’s get you out of renting and into homeownership.