Myth: You Must Make a 20% Down Payment
The 20% downpayment is a myth that could hurt you down the line, so knowing exactly what to expect could help you make the best financial decision when it comes to buying a home.
If you’re buying a rural home, you may be eligible for USDA loans which have minimums of 0% down. Federal Housing Administration loans include insurance and mortgage and have a minimum down payment of 3.5%, so check if you’re eligible.
Both veterans and those who are active duty in the military are eligible for VA loans, the safest and most affordable options with minuscule foreclosure rates.
Myth: Buy in the Spring
We’re used to this idea that it’s best to buy a house in the spring, but remember that you’ll be in competitions with a lot of other buyers. This means that prices will inevitably go up.
If you chose to look for a home in the fall, prices may be lower, especially since the holidays are coming up shortly. This is also where you’ll find a lot of listings that had been available in the spring but didn’t sell, so sellers are likely to drop their prices even more.
