Contrary to popular belief, you can buy a home with less than 20% down—much less, in some cases.


The idea that you need at least 20% down to buy a home is one of the biggest misconceptions in real estate, and it affects a lot of homebuyers because makes them apprehensive about buying. While they wait, prices and interest rates go up.

Contrary to popular belief, you don’t need at least 20% down to buy a home. This is still a good number to shoot for, though, because you won’t have to pay any private mortgage insurance. Also, the more you can put down, the safer you’re considered to be as a buyer in the eyes of the bank.

In reality, you can pay as little as 3% down. If you’re an active or retired member of the Armed Forces, you can use a VA loan and pay 0% down!

Experts across the board expect interest rates to stay low over the next two years, and prices are growing, so now’s a good time to see what kind of down payment you’d be able to afford if you’re thinking of buying. Even if you think you don’t qualify to buy, give us a call and we’d be happy to help you get qualified.

“The more you can put down, the safer you’re considered to be as a buyer.”

If you’re a retiree and assume you can’t move because you don’t have an income and can’t qualify to buy, the good news is that lenders can examine other factors like social security dividends, pensions, interest on different accounts, and the equity you already have. There are also ways to roll your current property tax base into your next home.

I’ll conclude today’s message with a slightly different topic. We’ve run into a few situations recently where, due to the death of a family member, families have been left with a house that wasn’t put into a trust. Due to this, they have to go through probate before they can sell the house or satisfy the wishes of the deceased, which is not a fun process.

No matter what age you are, make sure your property is in a trust. Taking this extra step can save your loved ones a lot of time, energy, and money down the road.

If you have questions about these topics or there’s anything else we can assist you with, don’t hesitate to reach out to us. We’d love to speak with you.