Michele's Blog

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%.

How a Low Down Payment Helps You

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:

• You may be able to buy a home sooner since you’ll need less money down.
• You may be able to afford a higher priced home if the down payment is no longer an obstacle.
• A low down payment lets you use more of your money toward closing costs or new home expenses.

Low Down Payment Programs for First Time Home Buyers

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:

• FHA Loans: As low as 3.5% down*
• VA Loans: No money down*
• USDA Loans: No money down*
• Fannie Mae and Freddie Mac Loans: As low as 3% down*

*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!

• 100% Financing is Possible With Our Chenoa Fund Loan Program
• Our Jumbo Solutions Loan Program Can Help You Afford a Higher Priced Home
• Make Home Buying More Affordable With The No MI Advantage Loan
• Trouble Qualifying? Try Our Expanded Access Specialty Loan Program
• Affordable Homeownership - Peak Home Loan Programs Allow 5% Down Payment

And don’t forget - many first time home buyers can also get assistance with down payments:

• CalHFA Down Payment Assistance Programs
• Down Payment Assistance for First Time Home Buyers

Down Payment Saving Tips

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:

• Set up an auto-transfer to a savings account for a set monthly amount. Chances are when it happens automatically, you won’t even miss those extra dollars.
• Adjust your monthly bills - try going without or reducing your Cable bill,  or increasing car insurance deductibles and adjusting coverages to reduce your expenses.
• Skip eating out for a month and put all the money you saved toward your down payment.
• Put your tax refund, bonus pay and unexpected monetary gifts toward your down payment savings.

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.