Jeremy Rains
Hi, this is Jeremy Rains with the Tony Ray Baker Group.
Tony Ray Baker
And I’m Tony Ray Baker.
Jeremy Rains
And this is the exciting truth that you want to know about low down payments. And we get this question all the time. How much do I need as a down payment?
Tony Ray Baker
Survey says.
Jeremy Rains
You need to have 20% as a down payment. As a matter of fact, more than three fifths or 62% of Americans think that you need a down payment of 20% or more to buy a home. And that’s according to the NerdWallet buyer report.
Tony Ray Baker
Right.
Jeremy Rains
So it’s probably because most homebuyers aspire to pay 20% down so that they don’t have to pay that mortgage insurance, right?
Tony Ray Baker
Absolutely. Nobody wants to pay mortgage insurance. But in my opinion, it’s better to get a home and get started owning real estate than to miss opportunity just because you can’t put 20% down. As a matter of fact, I purchased my very first home using an FHA home loan at 3.5% down. There’s all types of home loans in a variety of down payment amounts. There are conventional home loans that offer a 3% down, 5%, 10%, 20% down. Fha, one of the most popular loan products out there, has a minimum down payment of three and a half percent. And then there’s VA and USDA, which offer no down payment. Right? That’s shocking. It’s also important to know that there are specialty loans for doctors, police officers, teachers, firefighters, and people with exceptionally high FICO scores. For example, right now there’s a jumbo loan product that offers 10% down with no mortgage insurance. Right. Jumbo loan unheard of. All of this could be a little confusing, and I know that. So I want you just to remember
Tony Ray Baker
one thing. The right loan officer makes all the difference in the world of home buying. And an experienced professional real estate agent will know who to refer you to and will be happy to make that introduction. So be sure to check out our video on how to choose the right loan officer. There should be a link below. There’s also a link below to our 1 hour class. And that takes a much deeper dive into the home buying process. If you want to see our library videos, we have more of these and they are@ctucanhomes.com. And you just click on the buyer’s section in the menu. And if you want to call us if you’re looking at you need help anywhere for real estate in Southern Arizona, call us at 506-31-8669.
Jeremy Rains
Thanks for watching. This is Jeremy Reigns, Tony Ray Baker Group. Remax select nice.
Tony Ray Baker
And I’m Tony Ray Bakers. You guys have a great day. Bye.
The exciting truth you’lll want to know about low down payments
Survey says, most people think you have to have 20 % down payment, as a matter of fact
More than three-fifths (62%) of Americans think you need a down payment of 20% or more to buy a home, according to the NerdWallet 2020 Home Buyer Report
Probably because, most home buyers aspire to pay 20% down so they do not have to pay mortgage insurance.
In my opinion, its better to get a home and get started owning real estate than to miss opportunity if you can’t put 20% down. I purchased my first home using an FHA loan with 3.5% down.
There are all types of loans and a variety of down payment amounts
Conventional loans offer 3%, 5%, 10% and 20% down payment options
FHA, one of the most popular loan products, has a minimum down payment of 3.5%
VA, and USDA offer no down payment loans
It’s also important to know that there are specialty loans for doctors, police officers, fire fighters, and people with exceptionally high FICO scores
For example: there is a jumbo loan product that offers 10% down with no mortgage insurance. Unheard of, right!
This may all be a little confusing, so, I want you to remember…
The right loan officer makes all the difference in the world of home buying.
An experienced, professional real estate agent will know who to refer you to, and will be happy to make the introduction.
Be sure to check out our video called: How to Choose the Right Loan Officer
If you really want to explore the homebuying process, we have a full one hour class
link
