We get this question a lot – Do we really need 20% down these days? The short answer is absolutely not. Buyers can qualify with as little as 3.5% down with an FHA loan at many new home communities. FHA programs offer a little more piece of mind allowing some savings to stay in the bank. After all, who likes to be house poor?
FHA programs offer qualified buyers the opportunity to purchase new construction homes with as little as 3.5% down. For instance, a $350,000 home will only require a $12,250 down payment (not including up-front mortgage premium, pre-paids, closing costs, etc). To qualify for these programs buyers need a healthy combined income, mid-range debt to income ratios, and a decent work and credit history.
Closing costs, interest rates, and monthly payments will be higher; buyers will need to pay a portion of the FHA mortgage insurance premium either via a one-time payment at close, monthly, or within a higher interest rate. Regardless of these additional costs today’s record low interest rates still provide buyers with a low monthly payment option while keeping some savings in the bank!
The New Home Experts and lender partners can work you through monthly payment scenarios, qualifying scenarios, and get you on the path to purchasing the new construction home you’ve always wanted. Today’s historically low interest rates offer buying opportunities you wouldn’t believe. Contact us to get the process started!