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But what if you haven’t been able to save 20% for the down payment?

Are you finally ready to buy home? If not, maybe you should. Mortgage rates are still low but they’re starting to slowly rise. So there may never be a better time for you to buy home than now.

If you continue to wait, the cost of buying a home in the future will only increase. The rising interest rates will be part of the increased cost, and the rise in home prices may drive it so high that you won’t be able to buy a home.

But what if you don’t have 20% for the down payment?

Well I’ve got some good news for you. You don’t need it.

There are a number of different low down payment mortgage options available. On option is the FHA, Federal Housing Administration mortgage, which will allow you to purchase homes for as low as 3.5% down. With an FHA mortgage, you will pay the mortgage insurance through that for the life of the loan. There is also an upfront charge which is part of your closing costs.

And if you’re a veteran, you may qualify for Veterans Administration benefits with nothing down. If you purchase with a VA mortgage, there will be a funding fee which is paid up front but there will be no monthly payment.

But there’s another one which may actually work out better. And that is a conventional loan with private mortgage insurance or, PMI.

Conventional loans with PMI can quite often allow you to buy a home with as little as 3% down. However, if you buy with 5% down then your monthly payments will be considerably less. Rather than mortgage insurance which is paid up front, and added onto the original mortgage balance, the private mortgage insurance allows you to cancel the insurance when you have reached 20% equity in home value. And there are no upfront cost added to the closing costs with a conventional mortgage with PMI.

So what are you waiting for? A home will only get more expensive to you in the future. And now you are aware of three different options available to you if you do not have 20% down.

Again, what are you waiting for?

Call your Realtor, call Bunny and Art Reiman at 732-616-6226. We can help. Or begin your search for a new home by searching the Multiple Listing Service on our web sites. You can access the search tools at www.BunnyandArt.com  www.55PlusInOcean.com  www.55PlusinMonmouth.com

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