This month we’re taking a closer look at four myths that can cause people to self-select out of potential homeownership. This week’s segment – Myth: Mortgages Require a 20% Down Payment
You may have heard that the traditional home mortgage requires the buyer to make a 20 percent down payment. With median home prices in Minnesota hovering at around $236,000, that means you’d need to bring more than $47,000 to the table. It’s safe to say that that would be a pretty big stretch for most potential first-time home buyers.
The good news is there are all sorts of different mortgage products out there, and many different ways to package a home purchase transaction. These products and loan packages can result in down payments as low as 3.5 percent, or just over $8,000 – much more achievable via saving up over a period of a couple years. In some cases you may even be eligible for down payment assistance.
How do you know what you might qualify for here? That’s right – you connect with a Homeownership Advisor. Our network of nonprofit advisors sit down with you to analyze your own unique financial circumstances and map a plan to a successful home purchase. Best of all, their services are free. You can find an advisor near you on the Minnesota Homeownership Center’s website.