How Do You Determine Your Down Payment?
Your down payment is the money that you pay towards the cost of your new home at the time of purchase. This will determine your loan to value.
Required down payments could start as low as 3.5% of the purchase price of your new home. A VA loan may not require any money down.
PMI: Private Mortgage Insurance
If you put down less than 20%, you may be required to pay PMI. This will be added to your monthly mortgage payment. Security Bancorp will assist you with loan options and down payment requirements.
Common Ways of Funding Your Down Payment.
You can use your Savings account or borrower from your 401K.
A family member may be willing to give you a gift that will allow you to buy your home. If you acept the gift it must be in writing, funds need to be verified and there can be no repayment of the gift.
Down Payment Assistance.
State and local governments offer down payment assistance to low and moderate income home buyers. Contact your state housing authority for more information on these programs.