Do you know how much you need to save for a down payment on a home?

If you are looking at buying a home, it is important to know how much money you will need to secure a loan. Knowing your down payment options can help you see how much house you can afford and help you plan for your investment.

The following down payment options are available for those who qualify:

First Time Homebuyer – there are a number of incentives out there for first time homebuyers to enter the market. You can secure a conventional loan with a down payment of as little as 3%. There are also a variety of programs and loans that can help with down payment assistance.

If you are not a first time home buyer, a 5% down payment is typically the minimum required for a conventional loan. The current limit on conventional loans for 2020 is $510,400. This amount changes each year in accordance with the Federal Finance Housing Agency’s annual publication of conventional loan limits.

FHA Loans – loans insured by the FHA require a minimum of 3.5% down payment. You must also have a credit score of 580 or above and meet certain debt-to-income ratios.

VA Loans – veterans of the U.S. military can secure a home loan with a 0% down payment. This program is extremely advantageous for those who qualify.

USDA Loans – if you are looking at purchasing a home that is outside city limits, you may qualify for a USDA loan. Those meeting eligibility requirements can secure a home loan with a 0% down payment.

For qualifying St. Charles County, St. Louis County and Jefferson County residents, there is a down payment loan assistance program offered through Beyond Housing. You could receive up to $10,000 toward your down payment through this program!

At Magnolia Mortgage, our aim is to work with you and your budget to get you the best mortgage possible. Take the first step toward purchasing your dream home and find out today if you qualify for one of these excellent down payment options. Buying a home can be easier than you ever thought possible! Contact us.