How much money do I need to buy a home?

This is a question that I hear very often and I think that it is a lot of times misunderstood.

Generally, 20% is usually what is needed for a down payment on a conventional loan (the most popular type of loan). But, with that being said, sometimes you can go higher or even lower, even to 3% depending on the type of loan.

There are different types of loans for different circumstances. Factors such as your credit score, loan amount, and financial history affect how much money can be put down.

Different Types Of Loans

Conventional loans can allow for down payments as low as 3%.

FHA loans, which are backed by the Federal Housing Administration, can have down payments as low as 3.5%.

VA loans, which are guaranteed by the U.S. Department of Veterans Affairs, allow servicemembers and veterans to get home loans with 0% down.

USDA loans, from the U.S. Department of Agriculture, let buyers in rural areas pay as little as 0% down.

Want to learn more? Reach out to AJ Reding, Realtor at Inspired Real Estate, or Don Putz, a Loan Officer from Collins Credit Union, to learn more.

Or, do you live in Cedar Falls? If this is the case, we are hosting an event in College Square Mall @ Ariz' Lounge on June 7th from 6 pm to 8 pm. We will be answering any and all questions about buying a home!

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