Best Real Estate Agents in Gilbert, AZ

There’s a common misconception among buyers that you have to put down 20% when you buy a house. And buyers who think that’s true may put their dream of homeownership on pause until they save more. ​ But data shows the median down payment is below 20% and has been for years and there are programs designed to help too. It is wise though in most cases to put 20% down if able to avoid mortgage insurance. Generally speaking your downpayment ranges from 3% to 20% depending on the loan and your ability. The higher your downpayment the better the rate you typically get because it is less of a risk for the lender but that isn't 100% the case. Currently there are two popular loan programs that offer discounted rates while having either negative downpayment (I will explain shortly) or no downpayment. The zero downpayment loan is brand new by one of my select lenders and that rate will be determined this week. The "negative downpayment" loan is a loan in which you are given a fixed rate of 6.25% and they provide a 4% downpayment. You can add to this downpayment if you want or simply use the grant for the downpayment. Of course there are qualifications for these, for example you must make less than $106k per year along with taking a course. ​Bottom Line There are options for most people. It might just be the right time to buy a home.