A lot of people do not want to opt for a loan because they have come across myths related to low down payment mortgage options. Yes, you are reading this right. Even though the lenders offer a suitable loan option with down payment of their choice, so many people think twice before getting started with the procedure. Are you one of them? If yes, then we have got you covered. Let us tell you that you should speak to the lenders before making an assumption. Without the right information or hearing myths from one another, you are missing out on an opportunity to get as less down payment as possible. Thus, in this piece we have debunked myths related to low down payment. So without any further ado, let us get started.
Myth 1: You require about twenty percent of down payment
A down payment for about twenty percent should be there if you want to avoid other mortgage problems. Well, this is not the truth. You do have other options. For buyers who have qualified for the loan, lenders offer a mortgage with ten percent or five percent of down payment with monthly EMI. in addition to this, you can also skip the conventional loan, and go for loan options with 3.5 percent down payment. However, all of this will only take place if you qualify. Also know that if you have served for the military, you get a loan with zero down payment.
Myth 2: Put more than twenty percent down when purchasing a house
Maybe your friend or someone you know has asked you to put more than twenty percent down when purchasing a house. Well, let us tell you that this shouldn't be the case. You already want to avoid PMI which is why you need not put more down. A higher down payment has its own benefits and lower rate of interest is no exception. In addition to this, the more you pay, the less you borrow.
Myth 3: There should be no need to use gifts for down payment options
If you are someone who assumes that you cannot use cash from gifts when it comes to your down payment, this is not the reality. There are mortgage programs and lenders that ask you to make use of your own money. However, others are somewhat flexible. There are some loans like speciality loans which have strict guidelines on how much a borrower should be using for gifts. So, do not forget to speak to a loan provider before getting started with the procedure.
These are some of the myths that we have debunked for you when it comes to low down payment options. Do not let such myths stop you from enjoying the benefits of low down payment options. Get in touch with a loan provider and clear your doubts if any.
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