Buyers
To buy your first home, you need at least a 20% downpayment, right? WRONG.
You don’t need to save up for a 20% down payment. Many buyers have heard that this is the ideal target for a down payment, and some have even been told that this is a necessary MINIMUM amount, but that is not the case with the most commonly used loan products today.
Conventional loans typically require a 3%-5% down payment. If you make a 20% or higher down payment you can avoid the additional monthly cost of Private Mortgage Insurance (PMI). PMI protects the lender from the possibility of a default on the loan, and it may increase your total monthly payment by as much as 15%.
So while avoiding this additional expense is a good thing, renting and saving up cash for 2 extra years may actually COST you more money, as you miss out on building up equity and benefitting from property value appreciation.
Check out our stats on renting vs. owning if you want to get into the specific numbers.
If you qualify for a USDA loan, you don’t need to put ANY money down.
Ready to talk about your next steps to buy a home? Click this link to schedule a buyer consult.
Great news for anyone with student loan debt!
Great news for anyone with student loan debt! You may be eligible for between $10,000 and $20,000 in loan forgiveness under new federal programs!
Lower personal debt = Higher Pre-Approval limits for home loans! Schedule a consultation with us to find out if this new information could improve your chances at homeownership.
We will review what programs you may be eligible for through the Maryland Mortgage Program and other resources. Combined with this new federal relief, you may be able to cancel as much as $70,000 of student loan debt within 5 years. While owning your own home.
Things NOT to buy when you're under contract
We get it, you’re excited to move into your first home and create a life there.
✋But don’t make any big purchases yet! Big purchases will mean you have
More debt which may impact your ability to qualify for a mortgage 🚩
So before you make a big purchase while you’re under contract, talk to your lender. Don’t let a nice patio set be the reason your contract on your first home falls through!