NOVA Homes Blog: How Much of a Down Payment Do You Need to Buy Northern Virginia Real Estate?

Tuesday, August 26, 2014

How Much of a Down Payment Do You Need to Buy Northern Virginia Real Estate?

How much of a down payment do you need to buy a home? It's a common question Northern Virginia homebuyers ask and a topic that oftentimes discourages buyers from switching to homeownership. However, the answers might surprise you.

There are many options for down payments in Northern Virginia real estate and none of which should halt the process of your buying a home!

The options for a downpayment
Certainly you've heard that 20 percent is the best amount for a downpayment. This may be true and common among seasoned homebuyers, but it doesn't mean you're out of the running if you are not prepared with this amount right now. There are indeed lower downpayment options.

3.5 percent
In accordance with Federal Housing Administration loans (FHA loans), you would need a minimum of 3.5 percent down to buy a home. Also keep in mind, FHA loans do come with a monthly mortgage insurance payment, given the low percentage down, which can often make it more expensive than a conventional mortgage.

5 percent
With 5 percent down, Northern Virginia homebuyers can opt for a conventional loan. This option does allow for sizable amounts (as high as $417,000) with a lower percentage as a down payment. A conventional loan also allows homeowners to get rid of the private mortgage insurance after accruing 20 percent equity in their home after a minimum of 24 months.

0 percent
Two options do exist for buying a home in Northern Virginia without a down payment at all. The U.S. Department of Veterans Affairs loan (VA loan) which allows a veteran to purchase a home with no money down and the U.S. Department of Agriculture loan (USDA loan) which does have certain income restrictions. The USDA program works for homes deemed "rural" by the USDA and applies income limitations for the borrower.

If you're ready to buy but are uncertain of down payment options in our area, contact me today! With my experience, we can work together to find you a home as well as a program that can help get you there!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

Long & Foster Real Estate, Inc.
Visit Our Website
View Northern Virginia Homes for Sale
Become Our Facebook Fan
Follow Us On Twitter
Connect With Us On LinkedIn

No comments:

Post a Comment

..........................................

When you first meet Earle, she greets you with a firm handshake and a broad smile. She has a certain charm and friendly nature that immediately set you at ease. As you talk to her, she listens intently. You can see by the earnest look on her face that she’s already developing ideas and strategies to accomplish your goals. By the end of your conversation, you’re surprised that someone can have such a clear understanding of your needs after just one meeting. This is the essence of Earle’s real estate service. She’s a straightforward businesswoman who doesn’t let up until her clients are satisfied.
View My Complete Profile

......................................

Northern Virginia is a thriving area consisting of several communities that thrive with historical and cultural richness as well as physical beauty.
With all that the Northern Virginia area offers, there’s never a shortage of things to do, natural beauty and great schools. From the ocean to the mountains to the nation’s capital, this is a part of the country that has it all!
Earle has assembled some helpful resources to help you with finding your new home. From her comprehensive list of Local Links, her Home Style Guide, or hands on personal help, described below, you know you can count on Earle.