When you’re thinking of buying a home, the down payment on a mortgage can be a big hurdle. However, requirements have changed over the years and it may be easier than you think to secure a down payment for a home.
A down payment is the initial payment made to the seller when you buy a home. It is typically expressed as a percentage.
6% Down payment example:
$200,000 Purchase Price
Mortgage Loan - $188,000
Down Payment - $12,000
Here are three fast facts from the National Association of Realtors®:
-
You don’t need a 20% down payment. Many loan programs allow you to make a much smaller down payment, or no down payment at all. In fact, 60% of homebuyers financed their purchase with a down payment of 6% — or less!*
- Low down payment programs help first-time and repeat buyers. Low down payment programs are available to many qualified buyers, including those who are not first-time buyers.
- Down payment assistance is worth checking out. Buyers with a range of income levels and credit scores may qualify for down payment assistance. Ask your mortgage lender about programs available to you.