Since most potential home-buyers are employed, the income requirement for a home loan is often easily satisfied. But the down payment is what stops most people from owning a home. A lot of buyers think that you have to put 20% down but that’s not always the case anymore.
Options for a Low Down Payment
In the United States, there are some great options for first time homebuyers that will allow you to put as little as 3.5% down on your first property. Now that the housing markets domestically and abroad are recovering, the options for buyers are only going to get better. There has even been a resurgence of no deposit home loans and low down payment loans are now available to almost everyone.
Personal Situations Matter
The option you should choose depends on a variety of factors that only you can determine. Buying a home isn’t something that should be taken lightly and a lot of people tend to assume that buying a home will always be cheaper than renting one. But as we all know, there are a lot of extra costs that go along with owning that a renter never has to deal with. If your income isn’t stable, you might want to wait until you save up the standard 20% down payment. That way you’ll have lower monthly payments and more equity in the house should you need to sell or refinance.