July 3rd, 2018 2:11 PM by Michele Morse Reen
One of the obstacles that keeps first time home buyers out of the housing market is the misconception that they need to have a 20% down payment.* As housing prices have risen, saving up a 20% down payment* can seem like a far-off goal. Are you trying to save up to buy a home? Did you know that there are plenty of low down payment options for you?
The down payment is the portion of the home price that you pay cash for rather than financing it - most lenders require that some percentage of the purchase price be paid at the time of closing. Though a 20% down payment* will allow you to avoid paying private mortgage insurance, the average down payment size for borrowers is typically in the range of 5-10%.
You can definitely purchase a home with less than a 20% down payment!* Being able to make a low down payment can benefit you in a few ways:
There are several loan programs that allow low down payments and APM is proud to offer these loans to help first time home buyers like you. Here are some of our programs that allow low down payments:
*There may be qualifying factors. Please visit our Disclosures page for more details on loan types.
There are more specialty programs with APM that can help you afford a home by allowing a lower down payment - check out a few programs below!
And don’t forget - many first time home buyers can also get assistance with down payments:
Now that you know you have several low down payment loan options with APM, you can focus on saving up the amount you will need. Saving up a down payment doesn’t have to feel like such a chore. Try a few of our saving tips:
Achieving your homeownership dream may be just around the corner! Research your low down payment options, start saving your dollars, and contact one of our friendly loan advisors today so they can help you discover the programs that will work for your situation and help you plan ahead for your purchase.