Is Home Ownership Possible Without a 20% Down Payment?
Exploring Alternatives to the 20% Down Payment
Options your realtor may discuss with you include alternatives to traditional home loans like VA loans and government mortgage assistance programs. For example, if you’re a first time homebuyer, you may qualify for a FHA loan through the U.S. Department of Housing and Urban Development (HUD). With a FHA loan, you can put down as little as 3%, sometimes less. However, keep in mind that the higher your down payment, the less expensive your monthly mortgage will be. Another way to avoid a hefty down payment is to consider other housing options. By turning to a professional realtor, you can become informed of housing that will still work for you and your family, but at a lower price point. For example, instead of considering a three-bedroom single-family home, you may consider a condo or townhouse instead. In many cases a townhouse can give you almost as much room as a single-family home and at a significantly lower price. Whatever your situation, it's a good idea to make sure you have a solid plan in place for affording your home before you make any buying decisions. Working with an experienced realtor can help you determine precisely how much house you can actually afford. Once you have your parameters in place, your realtor can help you find something that will work within your budget. You may be surprised what you are able to find in Indianapolis without having to count pennies. Working with the best realtors in the area will give you access to listings you might not have been able to find on your own. Call RE/MAX Advanced Realty today at 317.298.0961 to learn more.
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