Dispelling Current Loan Myths: The “I Don’t Have 20% to Put Down” Myth

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Many buyers think if they don’t have 20% to put down on a home, they will not be able to purchase a new house. This simply isn’t true! In fact, you can buy a home with much less than 20% down.

The most common home loan today is not the 20% type most people think of when a home loan pops into their mind. Instead, the FHA loan is the most common loan variety used now.

Many people think the “FH” in “FHA Loan” stands for “First Time Home Buyers.” In fact, it does not! Instead, the “FHA” stands for “Federal Housing Administration.” This means even if you’ve owned a number of homes, you can and may very well still qualify for the popular FHA Loan.

Why are the FHA Loans So Popular?

So why are these FHA loans so incredibly popular right now? With the economy’s downturn, people are strapped for money for a down payment for a new home. The FHA loan only requires a 3% down payment!
This low down payment makes these loans very popular today. It means you can get into a home quickly and with very little down. This is a great option if you want or need a new home but are strapped for equity right now.

Other Great Loan Options

VA Loans are an excellent choice, as well, if you qualify. These types of loans require no money down. To qualify, for a VA loan, you must be a retired or active member of the military or a qualified member of the reserves or National Guard.

USDA Loans are also a good choice for some. They require little down, as well. Contrary to popular opinion, these are not just for farms and large acreages. We can help you determine if you qualify for this type of loan. Some of the factors include: what county and zip code the home resides in, your current income and credit history, as well as the number of dependents you can claim.

So, have we dispelled the “I Don’t Have 20% to Put Down” Myth? This simply isn’t a reason not to buy a home right now. There are a number of options that don’t require the 20% down requirement. Charleston Homes wants to help you find the one that’s right for you!