Unless you’re using a USDA or VA loan, you’ll always have a minimum down payment to make.
What’s the minimum down payment needed to purchase a home?
The reality is that unless it’s two specific loan programs, there’s always a down payment required. Those two loan programs are the USDA loan (for rural properties) and the VA loan (for veterans and active military personal).
Just because you have to make a down payment doesn’t mean you have to put down at least 20%, though. Depending on the loan program, the minimum is actually 3% to 5%. Many times, it makes sense to put this amount down even if you can put more down because then you can keep assets in your account for other investments that will yield a higher interest rate than the one on your mortgage.
When in doubt, give me a call so we can have a conversation about the best use of your funds. Sometimes you’re better off investing in other areas instead of putting more down than you need to.
As always, if you have any more questions about this or any other mortgage topic, don’t hesitate to reach out to me. I’d love to help you.