We have found that there is a lot of confusion and misinformation on how much money people think they need to purchase a home here in Lancaster County. Our real estate market is very diverse and offers a wide array of options for home buyers. The options vary depending on location, type of home, the individual’s personal situation and much more. Many people think that you need to be able to put 20% down to buy a home. That is not the case. In fact, if people waited until they had 20% to put down – many would never own a home!
For example, many buyers use FHA financing. This mortgage program requires a buyer to have a down payment of only 3.5%. So, if you are purchasing a $200,000 home it could be done with a total of $7,000. If you’re a veteran, you can utilize VA financing with 0% down. There is financing program called USDA that requires 0% down.
There are also conventional mortgage programs available to home buyers with as little as 3% or 5% down. Many people believe with conventional mortgages, a borrower needs to put 20% down to avoid private mortgage insurance. The fact is that there are ways to eliminate private mortgage insurance with as little as 5-10% down.
Bottom line: there are a lot of options. The key is knowing your options so you can make good decisions. If you’d like to find out more, feel free to contact us. We’re here to help.