*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Many people were taught growing up that you need at least 20% of the purchase price to qualify to get a loan. That pesky 20% amount isn't necessarily that important when it comes to getting a home loan.
When it comes to down payment amounts, it's important to remember these numbers, 3% and 3.5%.
When it comes to getting a conventional loan, it is required to have a 3% down payment to qualify for a loan. FHA loans aren't much higher, but it is required to have a 3.5% down payment if you decide on that loan product.
The difference in dollar amount is huge! For example: If a borrower is looking to purchase an $800,000 home, they might think that they'd need a $160,000 (20%) down payment to qualify. That's not the case at all. In fact, they'd only need a $28,000 (3.5%) down payment for an FHA loan, or a $24,000 (3%) down payment for a conventional loan. This could cut years off of saving money and penny pinching every chance you get, in order to qualify!
If you're looking to purchase a home, or want more guidance as to what is required when it comes to loan products, please give me a call. I'd love to chat with you and see what we could do to help you purchase your dream home!
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
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