One question I hear all the time is, “How much money do I need for a down payment?” The answer depends, so I usually go through a couple of scenarios to help someone figure out the right path.
The most common down payment option is 20%. However, there are other programs with 10% down, 5% down, or even 0% down. Each type of loan will require a certain credit score. The lower the down payment, the higher the score you’ll need to qualify.
There are a lot of programs out there for first-time homebuyers. The City of Columbus down payment assistance program requires you to have $500 and the city will pay the rest. Closing costs can be negotiated.
There’s also the Ohio Housing Finance Agency (OHFA) program, which will cover 2.5% of your 3.5% FHA loan. This means you’ll only need 1% for your down payment.
In more rural areas, you can get different down payment assistance programs. Veterans can use VA loans, which have no down payment requirement.
If you have questions about your down payment options or anything else related to real estate, feel free to reach out via phone or email. I look forward to hearing from you soon.