Being able to make a down payment is one of the keys to becoming a homeowner. Unfortunately, there are many myths that keep a lot of potential buyers from realizing they are capable of making a purchase. 

MYTH 1: You need to put 20% down

For years, putting 20% down was considered the golden rule in real estate. Is that still the case?

Most loan programs these days, especially government backed programs like FHA, RD, and VA, only require between zero to 5% for a down payment.

MYTH 2: Paying PMI is always smarter than making a large down payment

If you put less than 20% down, lenders require that you pay private mortgage insurance – or PMI. This insurance protects them from taking a loss if you end up defaulting on the loan. 

If you’re not able to save up to make a larger down payment, PMI can be a small price to pay in exchange of becoming a homeowner. 

MYTH 3: Down payment assistance is only for first time home buyers

While it is true that many down payment assistance programs are geared toward first time home buyers, that’s not always a requirement. We have “Keys for Service” LHC grant that gives down payment assistance to anyone in the service industry and one doesn’t have to be a first time home buyer.

Contact us today to review loan program options and let’s get your new home started!