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4 Options for your downpayment
4 Options for your downpayment
Before giving you a mortgage, financial institutions usually require you to have a “downpayment.” This is money you contribute toward the purchase. That initial payment is often critical for getting approved, and it can affect your borrowing costs throughout the life of your loan. As a result, it's wise to understand how down payments work so you can choose the right down payment amount.
While coming up with thousands of dollars may seem impossible at first, the potential homeowners have several options:
1. Putting 20% down will bring you benefits like lower monthly payments, more equity and no PMI.
2. FHA requires as little as 3.5% down.
3. A conventional loan owned by Fannie Mae or Freddie Mac, requires as little as 3%.
4. If you qualify for a VA or a USDA loan, you can qualify for a 0% down payment.
How to save for a downpayment?
1. Find out how much you need
2. Set a time frame
3. Set a budget
4. Set aside money in a savings account
5.Check your credit
6. Reduce high interest debt
If you want to know more about downpayment, you know you can call me, I will make it simple and safe!
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