– The Myth of 20% Down for a Home Loan –
Today’s post is a guest post from Phil Wright, a lender with Nova Home Loans in Scottsdale.
For many years, potential homebuyers have been put off or scared of purchasing a home because they have heard that they are required to put 20% down in order to purchase a home. This is a MYTH that has been around for many of years and it is 100% false.
In today’s world of home buying, you have the option to purchase a home with little to no money down. Although your monthly mortgage payments will be a little bit higher if you are not putting a larger sum of money down, you are still able to purchase a home with no money down if you can meet the criteria. From there, you would simply start making your monthly mortgage payments after closing on your home.
Depending on the lender you use, you will have multiple loan programs available to you. You simply will need to take the time to sit down with your lender to find the best loan program; one that fits your needs and wants for your new home.
And, depending on the state you live in, you may also be eligible to receive down payment assistance from your state to help with a home purchase.
Did you know that in Arizona, there are two down payment assistance programs that will help home buyers with up to 5% of the loan amount for down payment and closing cost charges?
The challenge is that many people still believe they need 20% down and are not aware that these programs exist.
We are here to help educate people on this subject and answer questions. Please don’t hesitate to reach out to us, we are more than willing to help!
Phil Wright NMLS:1178837
Nova Home Loans
6720 N. Scottsdale Rd. #160
Scottsdale, AZ 85253
Disclaimer: Information deemed reliable, but not guaranteed. Not all loan products are available to all consumers. Loan product availability can vary with things like creditworthiness, the availability of that loan within a geographic location, and other factors. To see what options are available to you, please contact a professional lender.