Are you reluctantly holding onto your current living situation due to lack of funds for a down payment? What if a lot of your perceptions on how much money you need to purchase a home were a myth. To buy or not to buy will no longer be a question. Below are 3 common myths debunked about down payments:
• Myth #1: All forms of payment are acceptable to put towards a down payment.
Remember, all lenders are required to verify where the funds came from. If you’re planning on selling your car, stock, or grabbing money from under the mattress, make sure you are documenting it correctly when depositing it into your bank account. See the infographic below for more tips and tricks on how to save for your down payment:
**Keep scrolling for more facts about housing payments**
• Myth #2: A minimum 20% down payment is required to purchase a home.
False. 20% is commonly thought to be the required down payment amount. Yes, 20% may be ideal in order to avoid private mortgage insurance (PMI), but fortunately for home buyers all over the US, loan programs are available that are designed to make purchasing a home more affordable. Now is the time to research and find the loan option that is best for you! Below is a list of some of the loan programs Platinum has to offer–with down payments as low as 0%!:
👉 Click to download infographic 👈
NOTE: Down Payment Assistance Programs are also available and vary by state.
Contact us to learn more about what your state has to offer.
• Myth #3: It’s better to put more than 20% down, if you can.
The more you put down, the less your monthly payment will be. If you can afford it, you should do it, right? Some home buyers might think that putting down a larger down payment (more than 20%), to avoid paying more interest throughout the life of the loan, is the “smarter thing to do.” However, the situation is different for everyone. Speak to a mortgage consultant to find out what type of down payment fits your budget. Click the icons below to speak to one of our experienced loan officers in your area, or submit an application to get pre-approved:
More tips on how to save for your down payment 💰🏡:
- Document all deposits prior to earnest money check clearing
- Give earnest money amount on contract only
- Include a gift letter when using cash from family or friend
- Use Certificate of Deposits (CDs), Money Markets, & High Yield Savings Accounts
- Research options such as down payment assistance and sweat equity
- Deposit undocumented cash in the bank
- Borrow for a down payment
- Cash advance on your credit card
- Use all funds for a down payment and create a situation where you are house rich and cash poor