Unlock the Door to Homeownership: Affordable Options for Every Buyer

Many people assume they need to save 20% of a home’s purchase price before they can consider buying it. While it’s true that a 20% down payment can reduce your monthly mortgage payment and eliminate the need for private mortgage insurance (PMI), it’s by no means a strict requirement. In reality, there are many options available for aspiring homeowners who may not have such a large sum saved. For example, FHA loans, backed by the Federal Housing Administration, allow buyers to put down as little as 3.5% of the home’s price. These loans are especially popular among first-time homebuyers because they often have more flexible credit score requirements.

Who is a first time homeowner?

* A first-time homebuyer is someone who meets any of the following criteria:

* Has not owned a principal residence in the past three years (including a spouse, if applicable)

* Is a single parent who only owned a home with a former spouse while married

* Is a displaced homemaker who only owned a home with a spouse

* Has only owned a residence not permanently affixed to a foundation

* Has only owned a property that cannot meet building codes without significant reconstruction costs.

Some conventional loan programs accept down payments as low as 3%, making homeownership accessible to more people. Additionally, veterans and active-duty service members have an incredible opportunity with VA loans, which are backed by the Department of Veterans Affairs. These loans not only require no down payment but also come with other benefits, such as competitive interest rates and no PMI requirement, making them an excellent option for those who qualify. With these alternatives, the dream of owning a home is closer than many realize. Whether you’re just starting to save or exploring your financing options, it’s worth researching the loan programs that best suit your financial situation. Homeownership might be more attainable than you think--let's talk about next steps!