Is a Down Payment All That’s Holding You Back From Home Ownership?
Does it seem like you’ve been to a lot of housewarming parties lately? Home ownership is once again becoming more financially feasible here in the Louisville area, and it could be your turn to host a cracker, wine and cheese party too.
Owning a home is the “American Dream”—now more than ever before. Plus, if you are currently renting, you could be spending more on your monthly rent than you would spend on a mortgage. So, why aren’t you joining the ranks of homeowners? Is it because you think you can’t afford a down payment? Actually, it could be that the down payment is less of a problem than you may think. Let us show you a few options that can help you achieve that dream.
- FHA Loan – An FHA loan only requires a 3.5 percent down payment. For many potential homeowners, this is a very achievable goal—much lower than the 20 percent down payment than is quoted as the standard for traditional loans. There are many other benefits to the FHA loan too, and it is often a possibility for those who have poor credit.
- VA Loan – If you serve or have served in the U.S. military, a VA loan allows you to purchase a home with ZERO down. Though the requirements are stringent, for the right buyer a Kentucky VA loan is a golden ticket to home ownership.
- USDA Loan – Another option is a United States Department of Agriculture loan. These assist low to moderate income individuals who want to purchase, repair or renovate in rural areas. These also do not require a down payment, so if your dream home qualifies it can be an excellent solution.
There are other options available too, depending on your situation. The important thing to note is that there are ways that you can purchase a home with low (or even no) down payment. So, maybe it’s time to put a little more thought into the idea. Check out an online calculator like The New York Times Rent Vs. Buy, look at some of the houses available around town and then contact us at Liberty Financial to find out exactly what you could qualify for—you may be pleasantly surprised!