In the old days, the question of how much you should put down for a down payment on a home was simple – ten percent. But these days, ten percent of a home’s value is a lot of money, and many homebuyers searching for their new home simply do not have that kind of money lying around. So if they can’t do ten percent, can they still get a mortgage?
The answer is yes. There are all sorts of programs out there to help first time home buyers, but they vary from state to state. Do your homework, and find out what sort of incentives are available to you. There may be programs that allow you to borrow some of your down payment from other sources, or a lower limit in place for new home buyers, possibly as low as five per cent.
There are downsides to these programs – usually financial ones. Lower down payments mean higher home costs, which mean higher mortgage payments over longer periods of time. Do your research, and balance the savings available in down payments against future costs very carefully.