If you’re like most people buying a home in Grand Junction or the surrounding communities, you’re pretty sure that you need a 20 percent down payment to buy a home.
Not necessarily. Some people can take advantage of programs that allow them to spend less on a down payment – and that’s a good thing, because it’s tough to come up with $40,000 to purchase a $200,000 home. If everyone had to do that, most of us would rent for the rest of our lives.
How to Avoid Putting Down 20% on a Home Purchase in Grand Junction
There are three great options for people who don’t want to come up with a 20 percent down payment: programs through the Federal Housing Administration, the Veterans Administration, and the U.S. Department of Agriculture.
FHA loans require only a 3.5 percent down payment. You may be able to qualify for an FHA loan, so it’s a good idea to ask your lender whether it’s an option in your case.
If you’ve been honorably discharged (or if you’re currently still serving), you’re most likely eligible for a VA loan. With a VA loan, you don’t have to put any money down – and you don’t have to pay for private mortgage insurance, either.
Often called “Farmer’s loans,” USDA loans are ideal for people whose incomes fall below the threshold established by the USDA and who are buying homes in a rural area.
What if You Still Need 20% Down?
If you still need 20 percent down to purchase a home because you don’t qualify for any of these programs, you could be eligible for down payment assistance.
Are You Buying a Home in Grand Junction or the Surrounding Communities?
Call us at 970-765-4135 or get in touch with us online. Tell us what you want from your next home and we’ll start looking right away.
In the meantime, please feel free to explore our Grand Junction real estate listings based on the type of property you want – just use the links below.
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