Common Down Payment Myths

Dated: 11/16/2018

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Down payments are an important part of the home buying process. However, many people get sucked into believing some misleading myths about down payments that keep them from buying a house. Here are three of the most common myths.



Myth 1: You must have 20% down

This is a common myth, but it is simply not true. Depending on the type of loan you get, such as FHA, you can have as little as 3.5% down, or even zero down in the case of loans like the VA loan.

 


Myth 2: Cash is always king

You may have heard that first-time buyers are often snubbed for all cash offers. Many people think that a seller will always choose cash over a loan, but this isn’t true. A seller’s choice will come down to their priorities. If you make a good offer, you can still be competitive against a cash offer.


Myth 3: You can use a loan for your down payment

You can have a down payment gifted to you, but you cannot use a loan without affecting your mortgage approval amount. You also will need proof that the money was a gift.


If you would like to learn more about down payments, talk to an experienced real estate agent. To speak with one of our BMP Network agents, click HERE.


BMP Network is a Real Estate Team under Keller Williams. They excel in meeting the real estate needs of buyerssellers, and investors in the Kingman, Bullhead City, Lake Havasu City, Parker, Mohave County, AZ, and Las Vegas, Henderson, Laughlin, NV areas. BMP Network in now HIRING - Apply Now


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