If you’re wondering how much you need to save for a down payment or struggling to save at all – you are not alone. Saving for a down payment is one of the biggest obstacles to buying a home. That’s why you have so many options to help you overcome it.
Today, saving for a 20% down payment may take 7 years or more. However, the average down payment on a house is only about 6% of the purchase price.
Low Down Payment Options
No Down Payment
VA Loan – available to qualifying Veterans and active-duty military
USDA Loan – available in select Rural and Suburban areas
Low Down Payment
FHA Loan – down payments ranging from 3.5% to 10%
Fannie Mae HomeReady – down payments as low as 3%
Freddie Mac Home Possible – down payments ranging from 3% to 5%
Online down payment gifting platform where friends and family can contribute to your down payment using debit or credit cards. Visit www.homefundit.com
Types of Down Payment Assistance
Funds that you do not have to pay pack if you own and occupy your home for a certain period of time.
Second Mortgage Loans
Typically have low or zero interest rates and the payments are deferred for an initial period of time.
Some state and local governments, including housing finance agencies, issue mortgage credit certificates to reduce the amount of federal income tax you pay at tax time.