Tuesday, July 04, 2017

Down Payment Problem - Are You Sure?

Denver has quite a few lenders who are willing to help first time buyers with minimum down payment loans. Some do not charge a mortgage insurance premiums but have other methods of helping. As long as there is work history, good credit and some "skin in the game" (money of some kind) most will help you figure out a way to buy that first home. This article covers other avenues of getting a down payment so read on...

There is increasing difficulty for first-time home buyers to save for their down payment as indicated in the graph.  Several factors that contribute to this trend include rising rents, rising home prices, student loan debt and flat wages.Denver down payment graph.png

Some would-be buyers feel they cannot buy a home today but a large part of those decisions may be based on inaccurate assumptions.

Nine out of ten non-owners believe they need ten percent or more for a down payment. The typical down payment for first-time buyers is six percent. VA has 100% loan programs as well as USDA for certain qualifying areas and buyers. FHA is known for 3.5% down payments. And FNMA and Freddie Mac have down payments as low as 3% and 5%.

There are gift provisions available for buyers who have an “angel” who would like to help them with their down payment.

There are ways to borrow against a person’s qualified retirement program for a down payment. It isn’t necessarily limited to the buyer but could include a relative. Interestingly, a son or daughter can borrow against their retirement to benefit their parents.

In some respects, having good credit and sufficient income is more important than the down payment. Don’t rely on “common knowledge.” Get expert advice and counsel to see if there is a way to advance your dream of owning a home.

When you want to talk to a competent lender in Denver contact me and we can discuss who might be best for you. There are a lot of really good lenders to choose from!

PS: A SAFE & HAPPY 4th of July to you!

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