If you're looking to buy a house but don't have the traditional 20% down payment, don't worry! There are still options available for you. As a realtor with Bay Homes and Estates, I've helped many clients navigate the process of buying a home without a large down payment. Here are five ways to do just that:

  1. Look into government-insured loan programs. The Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) offer loan programs that only require a small down payment, often as low as 3.5% for an FHA loan and 0% for a VA loan for qualified buyers.
  2. Consider a conventional loan with private mortgage insurance (PMI). While conventional loans typically require a 20% down payment, you can still get one with as little as 3% down and pay for PMI, which will protect the lender if you default on your loan.
  3. Use a piggyback loan. This is a combination of a first mortgage and a second mortgage or home equity loan. The first mortgage covers most of the purchase price, and the second mortgage covers the rest of the down payment.
  4. Look into down payment assistance programs. Many states and local governments offer programs that provide grants or low-interest loans to help buyers with their down payment.
  5. Use your retirement savings. If you have a 401(k) or IRA, you may be able to borrow from it to use as a down payment on your home. Just be sure to carefully consider the potential tax implications and potential loss of future retirement income before making this decision.

With these options in mind, it's possible to buy a home without a 20% down payment. If you're ready to start the process, contact me, Ben Ottmar with Bay Homes and Estates. I have personally vetted a handful of mortgage brokers that can assist you.