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Most people want to own their own home, but saving for a 20% down payment can be incredibly difficult, especially if you have children to support. The median price of a home in the United States is approximately $200,000, meaning a traditional down payment is $40,000. For many, that’s a year’s salary. Fortunately, you do have other options when it comes to financing a home purchase. You can buy a home with less than 20% down.
You may be able to get a low or no down payment loan, usually through a government program. Below are some of these loan types:
You may also be able to get a bank to offer you a mortgage with less than a 20% down payment, but you will have to pay for mortgage insurance.
Financial advisers usually recommend having a 20% down payment so you do not have the expense of mortgage insurance and so that your loan term is shorter. However, you do have other options if getting together that much cash is too difficult. Be certain to explore all modes of financing, including online loan reviews, so that you can make your dream of home ownership a reality.
Also, it is very important to improve your credit as much as possible before trying to take out a loan. If you need help with credit repair, you can look into some reputable credit repair sites to help you.