There is a trend in first home purchases that hasn’t always been the case. Over 61% of first-time home buyers are purchasing their homes with a down payment of 6% or less.
The myth is that a 20% down payment is required, but there are a number of programs, both public and private, that allow homebuyers to put much smaller down payments on their new homes.
Rents are on the rise and home prices are relatively stable. Interest rates are still very low and appear to be rising slowly. Many lenders are lending on homes without the insanity that existed in 2006.
There are a number of programs to help first-time homebuyers. Some, like FHA and VA, are from the federal government. Others are local or state programs designed to make it easy to afford your first home. The best way to find all the programs available to you is:
1. Contact a mortgage broker that represents multiple lenders (they can shop the best rates and terms for you).
2. Check out the Nevada Housing Division for more information about state programs.
It’s time for first-time homebuyers and renters to consider buying a home before the market or interest rates make significant shifts.
If you’re interested in buying a home, it’s worth talking to lenders to see how much of a down payment you’ll need. You’re likely to be surprised. Be sure to mention things like your veteran status or associations that you’re a member of. Many lenders have special programs for everyone.