Planning a Down Payment on a Bel Air Home Purchase

Planning a Down Payment on a Bel Air Home PurchaseIf you are planning to purchase a home in Bel Air there are many attributes of purchasing a home that have gone through your mind. One of those attributes is having enough money to make the down payment on the purchase of your Bel Air home which will enable you to qualify for a mortgage and secure an affordable monthly payment.

You might have heard that it is required you make a 20% down payment on the purchase of your home to be able to qualify for a mortgage. Coming down with this amount of money can feel impossible when looking at home prices in Bel Air. There is good news. Not every loan will require you to put down the traditional 20% to qualify for a loan. But this could come with some trade-offs.

Why 20%?

20% for a down payment has always been a traditional mortgage loan standard. This is because it shows that the buyer is putting a significant amount of their own money into the purchase of the home and it communicates less risk to the lender. But according to the National Association of Realtors, the median down payment hasn't been 20% since the year 2005. Putting down 20% is beneficial because it does not require you to carry private mortgage insurance on your home. Fewer homeowners are making a 20% down payment to purchase a home. The average down payment for a first-time buyer is 8% and the average down payment for a repeat home buyer is 15%.

You can also find help making your down payment

The company Down Payment Resource shows that there are over 2000 homebuyer assistance programs in the United States and many of them are focused on helping buyers with down payments.

Finding programs with lesser down payment requirements or down payment assistance

A simple web search of down payment assistance programs in the State of Maryland will bring you to many different government websites and a few articles about available programs. The first and most widely known program to assist homebuyers with the down payment is the Maryland mortgage program which can be accessed at maryland.gov. You can also find accurate information at homeowner assistance for the Maryland HUD.

Several loans are geared toward helping homebuyers who do not have large lump sums of money to put down on a house. The most widely known loans that do not require such a large down payment include FHA loans which offer down payments as low as 3.5% as well as VA loans and USDA loans. Some of these loans offer zero down payment requirements for qualified candidates. 

Don't let a 20% down payment keep you from purchasing a home in Bel Air

If you're ready to purchase a home in Bel Air and do not quite have the 20% down payment don't let it hold you back from shopping for a home. Talk with a local mortgage professional and let them help you walk through your options. You may be surprised to find out that you can find some great government assistance or a loan program that is truly affordable to help you get into a home with a lesser down payment. Yes, a 20% down payment is ideal but it is not mandatory to get into a home or find a home that you can afford. Waiting to buy could mean spending even more on a home with the attributes you were looking for in Bel Air.

If you are considering buying a home in Bel Air this year I am here to help. Contact me anytime with your Bel Air real estate needs. I am happy to help you find that perfect Bel Air home that meets your search criteria in a neighborhood that fits you.

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