A down payment is a portion of the purchase price of the home that you pay up front. The higher your down payment, the less you finance, and the lower your monthly payments will be. Many lending institutions want borrowers to put at least 20% down. But what if you’re ready to buy, but don’t have money saved for a down payment?
Wright-Patt can help you determine what your options are should you need to finance almost all of the purchase price on the home. Several special types of loans are available, including some loans backed by government agencies. You might consider:
- FHA Loans – through the Federal Housing Administration, often requires as little as 3.5% down.
- VA Loans – guaranteed by the U.S. Department of Veterans affairs, these are 30-year mortgages with zero down payment and no private mortgage insurance required.
- USDA Rural Development Loans – this is a government guaranteed program with no down payment required; the loan amount is based on the appraised value of the home, which in some cases will allow you to borrow more than the purchase price of the home. Find out more here.
Here are some other ideas for finding some down payment funds:
- Use your tax refund.
- Consider using part of the savings you already have.
- Set up a savings account and wait to buy – saving more money now may help you afford a better home down the road.
- Utilize the Dream Makers grant program. If you are active or retired military, you may be eligible!
You can always contact one of our friendly, knowledgeable Mortgage Originators to find out more. They will help you find the right mortgage for you.