Much like the current state of politics, it is sometimes difficult to get to the facts through all the noise and misinformation. I am finding this is true as we continue to see misinformation regarding homebuyers and the issue of down payments for financing home purchases.
A recent survey by Fannie Mae, the nation’s largest provider of mortgages for home purchase, found that almost 50% of potential home purchasers didn’t have the facts straight when it comes to down payments. Unfortunately, this creates the false impression that home ownership is unattainable.
Here is the good news:
There are a variety of mortgage programs available today with 0%, 3%, 3.5% and 5% down payment options. These options can be found in both conventional and government loan product selections. Some programs even allow the down payment to be fully gifted by a family member. Although some of these programs have purchase price and/or income limits. Lenders like Wisconsin Mortgage Corporation have a wide variety of options available for all home buyers. I always like to tell the story of a recent transaction we closed for a first time buyer…in this case the buyers were qualified to purchase a home but they didn’t have the money for a down payment. Our Loan Officer structured a 30-year-fixed-rate mortgage with a combination gift from Mom and Dad and Grandma and Grandpa for a 5% down payment. Instead of renting, these qualified buyers are now investing in their first home.
Another important program is the Federal VA financing option for qualified Veterans. This program is a 0% down payment option and is an important benefit for our Veterans who are in the home purchase market.
Whether considering a conventional loan or a government loan, I always urge potential buyers to take the time to get preapproved for financing before they begin the search for a home. Our Loan Officers take pride in giving solid advice and designing a home purchase plan that makes sense for the buyer…no noise or misinformation…just the facts.
One last thing, don’t let winter weather slow you down. Get a jump on the spring market and begin your home search today.
–John Inzeo, Vice President, Wisconsin Mortgage Corporation
Tags: down payment, down payment options, Fannie Mae, John Inzeo, loan officers, Mortgage, mortgage programs, shorewest, shorewest family, Shorewest Realtors, spring market, Wisconsin Mortgage Corporation