Green Bay Real Estate Agents, Desiree Wood, Matt Wood, Matthew Wood, Team Wood, The Wood Team. Serving Brown, Door, and Kewaunee Counties

The Facts about Down Payment Options

Facebooktwitterredditpinterestlinkedinmailby feather

Inzeo, John (WMC)

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: , , , , , , , , , , ,

Categories: Community, First Time Home Buyers, Home Buying, Mortgage, Quarterly Newsletter, Real Estate News

Leave a Reply

Your email address will not be published. Required fields are marked *

Home Valuation Report