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Down Payments: Do You Need to Put Down 20%?


One of the biggest dilemmas, especially for first-time home buyers, is the down payment. Saving up to 20% can be a challenge. In fact, we often see buyers who can easily afford the monthly payment, but have struggled to put together the down payment.

Generally speaking, a higher down payment can help you secure a lower interest rate. But, it’s not essential. There are special programs, like an FHA or VA loan, that allow you to have a lower down payment.

Some homebuyers may even qualify for a 100% financing loan that eliminates the need for a down payment altogether. Other available features include:

  • No restrictions on income - No matter how much or how little you make, you can qualify.
  • 720 minimum credit score required - Need help in getting your score up?
  • Maximum of 43% debt-to-income ratio - Set up a free account review if you want to find ways to minimize your current debt, so you can afford more home for your money.
  • Standard underwriting criteria - This is the information we need to approve your loan.

To help you better understand the entire home-buying process, we’ve put together an e-book — Tips From a Lender: A Homebuyer's Guide. It’s a great resource for anyone in the market, but especially for first-time homebuyers. You can get your own copy here.


Download a Homebuyer's Guide e-book!


Of course, the best way to answer any questions you have about your specific situation is to speak with a mortgage specialist.

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