If you’re like most people, you know how hard it is to buy a home for sale in Lake City without having money in the bank – but do you really need a 20% down payment?
Do you really need a 20% down payment to buy a home?
Although having 20% down is considered the standard for buying a home, you don’t really need that much. In fact, you can often come up with quite a bit less to purchase a home.
According to the National Association of Realtors, 81% of American by their first home with a down payment of less than 20% of the home sales price.
Remember, though, if you don’t put 20% down, that means you need to borrow more from the lender – and that means your monthly mortgage payments will most likely be higher. Your lender will also probably require you to purchase private Mortgage Insurance, or PMI, which can raise your monthly payments as well.
There are many loan programs that allow you to buy a home with as little as 3% down. A VA loan allows you to buy a home with nothing down, but even if you are using a VA loan benefit, it’s still in your best interest to come up with as much money as you can for down payment.
Other ideas:
- Borrow from your 401(k) or IRA
- Ask family members for a gift, accompanied by a gift letter
- Take advantage of federal, state or local programs that help first time home buyers through down payment assistance grants
Are You Buying a Home in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
In the meantime, check out the most popular Lake City home searches by exploring the links below.
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