It’s possible! With focus and the right team working for you, you can buy a home with less than 20% down. These three steps will help you secure your dream home with a little extra financial help.
- Improve Your Credit
We’ve talked before about the importance of paying off debt to improve your credit score. If you want a mortgage with a down payment of less than 20% you’ll need to roll up your sleeves and get your debts paid off.
If your credit score isn’t great, don’t be discouraged. There are a number of ways to improve your score. Almost any mortgage professional can help point you in the right direction and counsel you on what steps to take.
Not sure what is considered good credit? Read about them here.
- Consider Municipal and State Programs
Each state has its own loan assistant programs. Washington D. C. has the DC Open Doors program that allows buyers to put as little as 3% down.
If you are a first time home buyer an FHA loan option is available to you. FHAs are great for buyers who have less-than-perfect credit and want to put down a low down payment. With an FHA you can qualify for a down payment as low as 3.5%.
Research what your state offers and after you make a purchase remember that there are real estate tax breaks you should know about.
- Work With The Right Mortgage Lender
A mortgage lender who genuinely cares about your success in getting a loan is who you want to work with. Shop around until you find the right lender. While talking with them help them feel comfortable with the idea of lending money to you. Get to know them and let them get to know you.