Do I need a 20% down payment to purchase a home? | #RealEstateTalk 020 | Spring Texas Real Estate

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Welcome to another episode of real estate talk I'm Jill Wente a Realtor with Better Homes and Gardens Gary Greene specializing in the Spring Texas real estate market

Today I have a special guest with me It's Stacy Gross, a branch manager for Gibraltar mortgage Stacy has been in the mortgage business for over 20 years and she has helped over 2,600 people buy a home She's joined us to answers some mortgage questions Stacy is it myth or reality that you need a 20% down payment in order to buy a home Not at all as a matter of fact conventional allows for as little as a 3% down payment assuming you're considered a first time home buyer which means that you just can't have owned a home in the past 3 years

FHA allows for 35% down payment and if you're a veteran you can finance the entire amount of the purchase price USDA also allows for 100% financing as well as long as the property qualifies So I would say that it's a myth I get that question all the time

Many people still think that you need 20% down to purchase a home and that's not the case at all You put down as little as 3% for a conventional loan? Absolutely a conventional loan says that as long as you haven't owned a home in the last three years that you can put as little as 3% down If you have owned a home in the last three years you can put as little as 5% down Most people put down payments of 5 percent increments but you can go as little as 3% If I don't have 20% to put down I can go with a lot less and put down 3% or 3

5% if I go with a FHA loan but in doing that is there additional fees I have to pay? Not at all there's not a penalty for putting a lower down payment If you do put less than 20% down on a conventional loan you will have to pay mortgage insurance or buyout of mortgage insurance There are other options to get rid of mortgage insurance but the loan has to be insured in some way when you put less than 20% down You pay a little bit more in terms of mortgage insurance but there's not a penalty nor additional fees or cost that you're going to have to pay in in terms of putting a lower down payment Fabulous I appreciate you answering those questions for us, Stacey

Thank you for tuning in to another episode of real estate talk I'm Jill Wente, a Realtor with Better Homes and Gardens Gary Greene You can reach me at 2818048626 or you can reach Stacey Gross at 281

831987 Thanks for tuning in