The main misconception, regarding down payments, is that you need to put 20% down. This is the case for some loans, but not all. Many banks are allowing smaller down payments for certain buyers. On average, first-time buyers have been putting down 6%. Most homebuyers have been putting down 14%. Repeat buyers have only been making down payments of 17%. There are several types of loans that may allow a borrower to put down less than 4% for down payment. Some of these types of loans include USDA, VA, or FHA.
It is best to speak with your loan officer to see what offers their company may be offering. Many have programs that help with closing costs or have special offers for first-time buyers.
Read the Original Article Here: You May Not Need as Much as You Think for Your Down Payment [INFOGRAPHIC]