How much do I really need to buy a home?
"How much do I need for my down payment?"
"I can't afford 20% down."
"Are there any options for me?"
Do any of these questions sound familiar? Every year we inevitable get asked these questions or hear about people that have missed an opportunity simple because they failed to investigate further. So today, we will take a look at what a Colorado down payment may actually look like.
Your specific down payment is going to depend upon a lot of factors. Things such as your current income, current debt, and your credit report will all influence the type of loan you qualify for and therefore all of these topics discussed are really dependent upon your unique situation. The best first step is to always connect with a lender that you know, like, and trust. This will be one of biggest decisions of your life. Make sure the person in your corner is the right person for you.
There are several different types of loan programs out there that can have a big impact on your down payment. According to Stephanie Reicherts, president of Inspired Waves Home Loans in Longmont, the median down payment was 6-10% of the purchase price of your home in 2018. She also highlighted that 16% of home buyers received financial assistance from friends or family members in the form of a gift in 2017. Receiving a gift like this could impact the specific type of loan you can qualify for, so it may be worth asking if your family is willing and able to help out.
Let's take a closer look at some of the more common loan types and their typical down payments. Check out this infographic created by Rebecca Milliken of M2 Lending Solutions.
Cary Pazol of Primary Residential Mortgage also added that there are grant programs that can provide 100% of the down payment for you.
There are so many options out there that can really help you get out there and find your dream home. When you are first getting started, it can seem very intimidating and scary, however, with the right lender and the right loan, all your fears can take a backseat to the joy you will get from owning a home.
Want to get started? Reach out to these fabulous lenders!
Special thanks to them for contributing to this article and for being advocates
of grabbing the good life!
Bank of England Mortgage
M2 Lending Solutions
Inspired Waves Home Loans, LLC
NMLS 1 7 34239
Primary Residential Mortgage
NMLS # 295986
JULIA AND SHAWN BANDEL
GOOD LIFE REAL ESTATE LLC
702 Graham Circle
Erie, CO 80516