Down Payment Misconceptions

Are you considering buying your first home? Maybe you’re second or third? Or maybe you have it in your 10 year plan to own a home and really build generational wealth. Regardless of when you’re looking to buy, we are going to talk about some misconceptions towards how much a down payment should be and by the end of this blog, you’ll be on the path to saving money while buying a home.

Many people have heard that putting a down payment equal to 20% of the home purchase price is necessary. But, that old advice is no longer a blanket statement applicable to everyone—you have options! For example, if you qualify for a first time buyer program, meaning you are buying a home for the first time, we have options that only require a 3% down payment.  There are also federal programs, like loans backed by Veteran Affairs that provide 100% financing. Transparency is very important when it comes to these products so we recommend reaching out to one of our member consultants to break down the details of how you can get a home with little or no down payment. If you are not a first time buyer, we have our standard, fixed rate, options that require as little as 5% down. That’s a 15% difference of what you do not have to pay! According to Zillow, the average home price in Washington State is $624,275 —a 20% down payment would be $124,855 while a 3% down payment is $18,728.

A worry that some buyers have is paying private mortgage insurance (PMI) if they do not put the 20% down. We are here to tell you there are ways to get rid of PMI through specific programs that you might not know you qualify for—just ask your member consultant

There are mortgage products like Veteran Affairs (VA), Federal Housing Administration (FHA), Fannie Mae (FNMA), and First Time Buyer (FTB) that can all help you on your path to home ownership. You work hard in life and Verity is here to help you along the way with products to make life a little simpler. Keep an eye out for our Home Buying Workshops! We regularly host free virtual workshops to help you on your home buying path. For more information about the different mortgage products we have visit our mortgage page.