Do I Need A Down Payment To Buy A Home?
As long time Southern California Realtors®, we’ve had many common questions from our clients over the years, and one of the most common questions is “do I need a down payment to buy a home?”; the answer is no.
The reason why not every buyer needs to have a down payment when buying a home is because with the VA loan a qualified home buyer, or their spouse, can buy a home with 100% financing and a zero down payment.
To qualify for the VA loan you must have must have at least 90 days of active service during wartime, 181 days of active service during peacetime, or at least six years of service in the Reserves or National Guard.
VA Loan benefits are also open to the spouse of a service member who died in the line of duty, or even as a result of their service-related disability.
What About Non-Veterans?
For non-veterans, there are also non-down payment options available as well too, thanks to grants and down payment assistance programs that some Southern California lenders offer borrowers.
To qualify for a down payment assistance program you must meet certain income requirements and the home that you want to purchase must be in an area that’s zoned for the specific grants or down payment assistance program.
Although down payment assistance programs are excellent for homebuyers who may not be able to buy Southern California homes, because they have not been a will save money for the down payment, the reality is that we always encourage a homebuyer to put at least some money down when buying a home so that they will have equity, or skin in the game, once they move into the home.
For mortgage loans that require a low down payment consider a HUD or FHA loan because these loans are available to buyers with credit scores under 600 and only require a down payment as low as 3.5%.
Learn More about Southern California Real Estate
For questions regarding no down payment options, or to view Southern California real estate, contact Fred Sed Realty today by calling us at (800) 921-9231 or click here to connect with us online.