How to save for a down payment

It might seem like it will be costly to purchase a home, and you might think that you will have a considerable down payment. Oftentimes, because people think that they cannot afford their down payment, they’re forced to keep renting. Although you might think that it’s impossible to afford your down payment, it might be more possible than you’d think.

How Much Should I Save for My Down Payment

Prospective homebuyers often think that they need to have 20 percent down on their house before they purchase it. Although this number is probably ideal, you don’t need to put down 20 percent, as you can find ways around this number. In actuality, many mortgages offer buyers a much more manageable minimal down payment. Here are some ways that you can finance your down payment if you’re concerned about covering it:

Conventional Loans

When you use a conventional loan, you’re able to put down small payments, usually around 3 percent. Therefore, if you’re purchasing a home that is around $300,000, you’re only going to have to put down $9,000. It’s important to note that even if you opt for this choice, you’re going to have to pay for private mortgage insurance if you own less than 20 percent of the equity in your home.

FHA Loans

The Federal Housing Administration offers loans that allow you to put 3.5 percent down on a home. So, you could put down around $10,500, if you’re purchasing a $300,000 home. Remember, to qualify for these loans, you’re going to have to have relatively good credit, around 580.

VA and USDA Loans

If you’re using a loan from the United States Department of Veterans Affairs, you don’t have to put down any kind of down payment. Moreover, if you qualify and decide to use a United States Department of Agricultural loan, you don’t have to pay a down payment, either.

Equity Now

Looking to buy a new home or refinance your existing mortgage? You can trust Equity Now, a direct lender with almost 40 years of experience in the industry, to provide you with exceptional service and great rates.  Check out our reviews to see what our clients think.

Our team of experts is dedicated to guiding you through the home buying process, evaluating your application in-house, and finding the right mortgage solution for your specific needs. We offer a variety of mortgage options, including purchase mortgages and refinance mortgages, to help you achieve your financial goals.

At Equity Now, we understand that buying a home or refinancing your mortgage can be overwhelming. That’s why we’re committed to making it easy for you by handling everything in-house and making lending decisions quickly, so you can close in as little as two weeks.

We’re licensed to lend in five states – New York, New Jersey, Connecticut, Pennsylvania, and Florida – and we’re approved by the U.S. Department of Housing and Urban Development (HUD), Fannie Mae, Freddie Mac, VA, and FHA. We pride ourselves on being a direct lender, which means we have the flexibility to make lending decisions quickly and efficiently.

Our great rates and exceptional service have earned us a reputation as one of the best mortgage lenders in the business. We’re committed to providing our clients with the best possible rates and making the home buying or refinancing process as smooth and stress-free as possible.

Don’t settle for less than excellent rates and outstanding service. Contact Equity Now today to start your homebuying or mortgage refinancing journey with a trusted direct mortgage lender. We’ll guide you through the process and provide you with the best possible rates so you can achieve your financial goals and realize your dreams of owning a home