Guest Blog Contributed by Chamber Member Lori Powers of Academy Mortgage Corporation
Spring is here — and with it comes the most popular time of year to shop for a home. Many people have mistaken ideas about down payments that keep them from becoming homeowners.
Here are five down payment myths and why they’re false:
MYTH 1: I must pay a 20% down payment.
Not true. The typical down payment today is between 5% and 10%, according to SmartAsset.
MYTH 2: My down payment has to be all my own money.
Not true. Borrowers have several options for saving for a home, including gifts from family, such as wedding gifts; grants from nonprofit agencies or public institutions; state down payment assistance programs; and employer assistance.
MYTH 3: Down payment assistance programs are only for first-time homebuyers.
Some programs are just for first-timers, but others are not. In addition, the U.S. Department of Housing and Urban Development (HUD) broadly defines a first-time homebuyer as someone who hasn’t owned a home in the past three years; a single parent who only owned a home with a former spouse while still married; and a few other categories of borrowers.
MYTH 4: Down payment programs are only available in big cities.
Down payment and homebuyer assistance programs are available in small and large communities. Contact me for more information.
MYTH 5: Down payments are always required.
If you’re eligible, VA and USDA loans are 0% down.
For more information on this topic, contact Lori Powers, Loan Officer | NMLS# 761276 at (503) 363-4878 Branch