No down payment? “No problem” say many mortgage companies. In fact, a recent survey showed that over 35% of loans are “No Down” loans.
In the past, a VA loan was one of the few ways people could buy a home for no down payment. It also wasn’t long ago when most people assumed that a twenty percent down payment was necessary to purchase a home. That is certainly not the case for many people today.
I can recall many times when people have said they felt they would “never” be able to save enough money for a down payment to buy a home.
Today’s world of financing is much different than yesterdays. A recent study by the National Association of Realtors mentioned that the average buyer made a TWO percent down payment. Zero down loans are very common in today’s market for many reasons. First time buyers might have a good credit and a good new job but not a ton of cash in the bank. In that case, a low down payment loan might be their only option.
Most home buyers agree that it is better to purchase a home instead of “throwing away” money on rent every month. Others choose to finance as much home as they can and use their hard earned money for other things. Things such as investments, college, home improvements, investment properties etc. etc.
Speaking of college, we are also seeing many parents look to low down payment loans when helping their children purchase their first home. It can be a great win-win situation for both of them!
Of course, it is hard to pin point a right or wrong answer when deciding on what kind of loan to use for your next purchase. As always, it is best to rely on the help or guidance of people in the real estate or mortgage business.
If you have any questions, I’ll be happy to discuss some of your options and to point you in the right direction.. Remember to “Just Call Nick!” at 602-803-NICK
1400 E Southern Ave #100
Tempe, AZ 85282