Homeownership can be an important step in building one’s net worth. Between the appreciation in real estate values that homeowners often enjoy, and the increase in equity levels that happen with each monthly payment, it’s no surprise that homeowners tend to enjoy a higher net worth that renters.
That said, the purchase of a home can seem daunting. This is particularly true for those saving up for the down payment in a state where home values have been increasing so rapidly for years. So, what are a person’s options as a first-time homebuyer aspiring to get into the real estate market?
Thankfully, there are numerous options available to help a first-time homebuyer get into that first home.
Let’s start by discussing the size of the down payment required. The minimum down payment required is often significantly less than what one would expect. Many people are under the impression that a 20% down payment is needed, but that’s not necessarily the case. Alpine Bank has Fannie Mae and Freddie Mac loan programs that can often get a homebuyer into a new home for as little as 3% down.
For those with troubled credit, FHA offers a program with a down payment of just 3.5%. Veterans can likely purchase a new home with 0% down.
The list of programs available to get first-time homebuyers into their first home is extensive, so chances are good there’s a program that will be a good fit for you.
If you’re interested in taking a closer look at a low-down-payment loan program, contact your local Alpine Bank mortgage lender.