How Much Do I Need for a Downpayment

Most people have heard that you need around 20% down.  But I’ll tell you now, that is not the case. There are a number of lower down payment programs, and even ones that help you make that down payment.  Ya, you heard me right.  So let's break down a couple different options:

1. The VA Loan.  For our veterans and active military, you have a phenomenal opportunity with the VA mortgage to put 0% down, and a number of other benefits.

2. The USDA Loan.  For those of us that aren’t active military or veterans, USDA is a loan program that allows buyers to use 0% down, however the properties can not be within the city limits.  But in our area, that’s more places than there aren't.

3. The FHA Loan.  FHA is a government back loan that allows buyers to go as low as 3.5% down.  This is a great loan option especially for those lower credit scores.

4. The Conventional Loan. This is your traditional mortgage program.  And this program you can put down as low as 3%.  And the similar with the previous loan types, the more you put down, the lower the fees are for the loan, and the lower the interest rate.

And then we have additional programs we can access for things like Down Payment assistance.  Now with programs like the Maryland mortgage program, eligible buyers are able to access money to assist or pay the downpayment, and some programs even cover other closing costs.  We have been to many settlements where our buyers are coming to settlement with $0 out of pocket

If you don’t think you can afford a house, you may be a lot closer than you think.  If you are unsure where you are, reach out today to talk to one of our expert agents and lenders to figure out what options you have to buy your next home!