Think You Need a 20% Down Payment?

Think You Need a 20% Down Payment?

     It seems like a lifetime ago, but in actuality, it was just a little over 1a decade ago that the nation’s huge housing crisis took place ...

     As a result of that crisis, there were ... and since have been ... a lot of changes that have taken place within the housing and mortgage industries.  One such change is the "tightening" of Mortgage Underwriting Standards.  

     This tightening was much needed, as it was painfully obvious ... underwriting and lending standards previous to the crisis were way too lax.  New safety guards and regulations meant to protect and help Borrowers needed to be implemented.  


    Much has been written regarding the new changes.  As proof, conduct a simple online search utilizing any of these terms (or many others): 

• Mortgages 
• Home Buying 
• Mortgage pre-approval requirements 
• Documentation Needed for Mortgage Application
• TRID 
• Down payments 
• Underwriting 
• More 

    ... You’ll reap page after page of articles and editorials addressing and educating current and potential homeowners and mortgage borrowers to the changes that have occurred as a result of the crisis.  

     But it should be noted ...  one thing in financing has been left largely unchanged throughout and after the crisis.  That one thing is regarding DOWN PAYMENTS and down payment requirements.

     The myth or misinformation surrounding down payment

needs and requirements are vast.  And too many potential home buyers are believing them.  

     The biggest myth or misinformation shared?  

     That you need a full 20% down in order to buy a home.  That's wrong ... simply not true.

     It's true that the ABC’s of building and saving a Down Payment became more challenging during the recession and remains so in its wake.  But the actual percentages surrounding Down Payment requirements for financing/borrowing have remained unchanged.

     Both prior to the housing crisis and in place currently, the following were and remain available: 

• 3.5% Down Payment FHA loans 
• 0% Down Payment VA loans (Qualified Veterans) 
• 3% Down Payment Conventional loans 
• 0% Down Payment USDA loans (Eligible Applicants – Eligible Locations)
• Many States/local municipalities have Grants or resources available for Borrowers in need of Down Payment Funds

     Now, it should be noted that the topic and details surrounding any Down Payment you might make are hugely important.  As a result, you’d think that every effort would be made to write articles or report factual information, right?  

     Yet misleading or inaccurate information remains readily available and shared.  And that's sad because when bad info is shared it can keep someone from pursuing their home buying dream.  

    So education is important.   And corrections must be pointed out regarding misleading bad info. 

     The most important education and corrections that must be made surround Down Payment requirements.  Simply ...

You DON’T need 20% Down!

    

     Let me say that again ...

                

                           You DON'T need 20% Down!

     
     And one more time for good measure ...

                           
                           You DON'T need 20% Down!

    

     This is also a fact: 

• A new Home Buyer/Borrower may be required to hold Private Mortgage Insurance if putting less than 20% down 
• That Private Mortgage Insurance does NOT keep them from buying. (The obtaining of Mortgage Insurance is almost a foregone conclusion for qualified Buyers) 
• Private Mortgage Insurance is mandatory for FHA Government-Insured Loans

     It's also beneficial to know:  Down Payment Funds can come from many allowed sources. 

     Those sources include:

• Gifts from relatives
• Loans from Retirement Funds
• Life Insurance Policies with Cash Value
• Stocks
• Bonds
• Inheritance
• Traditional Sources of Savings, Checking, Mutual Funds, Money Market Accounts, and documentable Bonuses from Employers

     Are you thinking that you might like to buy a Chicago-area home (IL & Wi) at some point in the future?  Are you a potential homebuyer now?  

     The best tip I can provide you is this:  Talk to a mortgage lender.  Do it as early as possible!

     The info your lender will provide you will be specific to YOU and YOUR individual finances and needs.  No one else's.  

     The information shared won't be based on hearsay or second-hand or dated information.  It will be based on facts.  YOUR personal detailed facts. 

     So, if you’re hearing from someone or reading somewhere that you’re required to have a 20% Down Payment to buy or finance a home?  Do not believe it.

     Contact me or contact a lender in your locality.  Get the facts.  Lower Down Payment options exist and may be available to you.

     Don’t give up!  Don’t get discouraged.  Take action.  Let's talk now ...

* Hoping to Buy or  

Refinance a home, new construction, or
investment property in New Lenox or elsewhere in the Chicagoland - IL/WI area?


Contact me! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.

     
I'm easily found at:

Gene Mundt

 Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI License #216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct: 815.524.2280

Cell/Text: 708.921.6331 

eFax: 815.524.2281 

gmundt@goapmc.com 

www.genemundt.com

Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (#NewLenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #CrestHill, #Plainfield, #Lockport #Channahon, #Bolingbrook, #Romeoville, #Naperville, etc.), #DuPage County, the City of Chicago, #CookCounty, and elsewhere within IL & WI. 

Referrals are Appreciated and Welcomed!