Many people are eager to buy a home right now while affordability continues to be a highlight of the current housing market. However, lack of financial education among first-time home buyers has pulled back many from purchasing.

In fact, four in five home buyers say they need help to understand what they can even afford.

Moreso, the idea that you need 20% down payment to get a loan is also a common misconception among first-time buyers.

In reality, there are a variety of down payment options available in the mortgage marketplace, and 20 percent down may not necessarily be the best choice for your purchase scenario.

Your down payment depends on the loan you choose, from zero percent in the case of a VA loan, to 3.5% on an FHA loan, to varying levels on different conventional loans on the market.

Even if you might think you can’t afford to buy yet, it’s a good idea to run numbers with your trusted mortgage lender in order to determine how much down payment you’ll need for the particular loan product you are considering.

To the current market overview of the areas of Fullerton, Cypress & Yorba Linda over the past 7 days shows there are 56 new listings on the market, 40 new contracts and 78 sales.

*Opinions are our own and not the views of eXp Realty.

Sources:
(1) https://americanlifestylemag.com/real-estate/buying-selling/why-the-20-percent-down-payment-isnt-always-the-best-option/?ts=1604005322989&cb=MTMyNzU3MA==&utm_source=cam
(2) https://www.keepingcurrentmatters.com/2020/10/27/how-down-payment-assistance-opens-the-door-to-homeownership/