Today I’m joined by a special guest, Adam Colberg from Fairway Independent Mortgage Corporation, to help me cover an important subject: down payments.
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Today I’m joined by a special guest, Adam Colberg from Fairway Independent Mortgage Corporation, to help me cover an important subject: down payments.
I’ve got a lot of buyers who still believe they need at least 20% down in order to qualify for a mortgage, but this isn’t the case.
Adam says he and many other lenders see this mindset in consumers fairly often as well. But Adam wants everyone to know that there are programs and loan products out there that are designed to help. USDA and VA loans are just two examples.
Some of these programs require as little as 0% down. Not everyone will qualify for these, but there are other products that can allow you to put down as little as 3% or 3.5%. Conventional loans and FHA loans are two examples of this.
If you have really good credit and a steady job but still want to save, putting down just 3% with a conventional loan may be right for you. This is actually a very common route that people have been taking recently. Rates right now are very low, which is definitely motivating people to buy.
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Another option for saving money during a home purchase is to consider a fixer-upper. Putting less money down will allow you to keep some cash to be used for improvements.
Rates right now are very low, which is definitely motivating people to buy.
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But even if you need to make improvements but don’t have cash set aside, there are other products you can take advantage of. At Fairway Independent Mortgage, there is a conventional homestyle type of rehab loan that can help you put the polish on your perfect fixer-upper.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
