Don’t Let These Down Payment Myths Turn You Away From a Mortgage

When buying a home, you might hear a lot of rumors or myths about what you need for the down payment. Believe it or not, home buying could be easier than you thought, especially when considering down payment programs or financing options. Angie will dispel a few common myths when it comes to your down payment.

Here's a full rundown of what's on this episode:

0:38 – Introduction to home-buying myths

• Setting expectations helps with the home buying process.
• New study shows millennials spend $100,000 in rent by age 30.

 4:15 – MYTH: You need at least 10-20% for a down payment.

• How much Americans put down on average is lower than you might think.
• There are even 100% financing options that exist.
• A higher down payment has benefits that could save you money.
• What’s the difference between 5% down versus 10% down?

7:02 – MYTH: Down payment programs are only for first-time homebuyers.

• Explaining the Down Payment Assistance program and how it can be used.
• Although you are getting down payment assistance, you do have to pay it back.

10:01 – MYTH: It’s difficult to qualify for down payment assistance.

• These restrictions do apply.
• Some require a certain credit score, a max income limit, and a particular debt-to-income ratio.

11:02 – MYTH: You can’t use gifts, grants, or loans for your down payment.

• Find out which gifts can be used and what’s needed if you do.
• City of Raleigh has up to $20,000 of down payment assistance money to give but does have stricter guidelines.