HOW MUCH DO I NEED FOR A DOWN PAYMENT IN THE BAY AREA?

What is the lowest down payment option when it comes to purchasing a home here in the California bay area?

The common misconception is that a down payment on a bay area house purchase could often buy you an entire house in many other markets throughout the United States right?

This is considering that the median 20% down payment on a house throughout the metropolitan Bay Area is roughly $190,000 those numbers come from an analysis talked about by the Mercury News based out of San Jose.

What the mercury news does not tell you is that 20% down payment is very rarely the norm anymore.

There are many options for lower down payments and you’d be surprised how easy it might be to qualify

5 MYTHS DOWN PAYMENT OPTIONS IN THE BAY AREA

MYTH 1: I must pay a 20% down payment.
Not true. The typical down payment today is between 5% and 10%, according to CoreLogic.

MYTH 2: My down payment has to be all my own money.
Not true. Borrowers have several options for saving for a home, including gifts from family, such as wedding gifts; grants from nonprofit agencies or public institutions; state down payment assistance programs; and employer assistance

MYTH 3: Down payment assistance programs are only for first-time homebuyers.
Some programs are just for first-timers, but others are not. In addition, the U.S. Department of Housing and Urban Development (HUD) broadly defines a first-time homebuyer as someone who hasn’t owned a home in the past three years; a single parent who only owned a home with a former spouse while still married; and a few other categories of borrowers.

MYTH 4: Down payment programs are only available in big cities.
Down payment and homebuyer assistance programs are available in small and large communities. Contact me for more information.

MYTH 5: Down payments are always required.
If you’re eligible, VA and USDA loans are 0% down.

Click to read more about these five myths and three funding sources that aren’t your savings.

CALL ME to learn more about down payments and how to become a homeowner!