REAL ESTATE INFO COLUMN: Do I need a 20% down payment?

Welcome to my Real Estate advice column, “Dear Don,” where I answer all your burning Real Estate questions. Send yours to me at donkoonce@windermere.com, and I’ll try to answer them in future columns.

Dear Don:

Do I need a 20% down payment?

Questioning Karla

Dear Karla,

The short answer is no, you do not have to have 20% down.

While some lenders will require you to have mortgage insurance on a down payment less than 20%, there are many loan programs out there that have down payments from $0 up.

For instance, there are several down payment assistance programs that wrap your down payment to the end of the loan and don’t have to be paid back unless you re-finance or sell. There is also a program that will loan you part of your down payment in exchange for a share of the appreciation (or loss) on the property when you sell. This allows you to put less than 20% down and still not have to pay for mortgage insurance.

On that note, let’s chat. Once I know your situation, I am happy to direct you to lenders where you can get more information on their programs so that you know what the best solution is for you.

Warmly,
Don

Are you ready to take the plunge into the Real Estate market? Don’t do it alone. My mission is to help you achieve your life goals. Contact me today at 206-250-7291 or donkoonce@windermere.com.