(WTNH) — You’re hearing it’s a seller’s market, and it’s a great time to refinance. But, if you’re looking to buy a home but don’t have the down payment yet, experts say there are options for buyers. We are stretching your dollar with what you can do to prepare.
Matthew Carbray with Ridgeline Financial said, “There is a misconception that you have to have 20%. That kind of comes from having 20% often avoids Private Mortgage Insurance (PMI). But, there are other programs at the state or government level where you can out down 3.5%.”
Carbray said there are flexible options. But the most important thing to do now is to analyze your household budget and decide what you need to save and how long it will take.
“If you need to come up with $20,000, and you’re in a position to save $1,500 a month, it gives you an idea that you’re probably a year out before you’re going to have enough for that down payment.”
If it’s longer than you were looking for, Carbray suggests looking for places to cut in your budget. Call some of your providers and see if you can free up some cash by cutting services you’re not using.
Remember, many mortgages less than 20% may come with some kind of private mortgage insurance. It’s why it’s so important to talk to an advisor so you know what you can financially take on.