How much do I need for a downpayment?
It’s the million-dollar question, and one I’m asked about all the time. The answer is, well, it depends. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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But here are some helpful guidelines to get you thinking. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
• Twenty percent is typically the gold standard, and it will increase your chances of locking in a low- interest rate. You’ll also avoid private mortgage insurance (PMI), which lenders require if you put down less than 20%.
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• Depending on the type of loan, however, you can put down less than 20%. FHA loans backed by the Federal Housing Administration, require as little as 3.5% down. And USDA loans offer 0% Down for buyers with low debt, willing to move to more rural areas.
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• Keep in mind the average first-time homebuyer puts just 6% down, so don’t fret if you don’t have piles of cash laying around. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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An experienced agent can give you all the info you need on the various types of loans. With so many options, there is sure to be one that’s right for you. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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If you’re thinking about buying, give me a call. I’d love to help.
Lexxi Perez
📱 Lexxi Perez (919)324-5152
