Buying a San Antonio home comes with its own stresses. Finding the right real estate agent. Locating the perfect property. Putting in an offer and getting it accepted. Then, financing. That last step creates a stumbling block for many buyers interested in Stone Oak living as well as other parts of San Antonio. And what is the #1 stressor when it comes to financing? The downpayment. How much do you need? Is it always best to pay cash? What if I don't have enough? Read on for answers to some common downpayment questions.
Common Downpayment Questions Answered
Do I Really Need 20% Down?
One of the common downpayment questions I hear most often is whether a buyer really needs to put 20% down. The quick answer? Not always. While financial experts agree that 20% is ideal, it's not always necessary. FHA and USDA require as little as 3-3.5% down. Did you or your spouse serve in the military? Then, you may qualify for a VA loan with $0 down. Many conventional loans allow less than 20% to qualify as long as you meet other eligibility standards. With the exception of a VA loan, you will be required to pay private mortgage insurance (PMI) if you put less than 20% down on your home loan. So, keep in mind that the higher your down payment, the lower your monthly payment.
How Can I Compete With a Cash Offer?
You submitted a great offer with a loan in place and an awesome personal letter describing how much you and your family love the home. Then, you find out that another buyer came in with cash. Don't count yourself out yet. Many times, cash buyers offer well below asking. Why? Cash in hand provides good leverage. However, if the cash buyer wants to tear everything down, it might dissuade the seller from accepting their offer. Here's where a great personal letter comes in handy. Ask your San Antonio REALTOR® to help you craft an outstanding letter to submit with your offer. Make the seller see more than a number on a piece of paper. Show them the people behind the offer.
I Can Always Apply for Downpayment Assistance, Right?
Yes. San Antonio offers downpayment assistance programs like the Homeownership Incentive Program (HIP), the First Responders Homebuyer Assistance Program (FRHAP), and the Homeownership Program for Employees (HOPE). However, each program comes with strict eligibility requirements and restrictions. If you wish to pursue these avenues, contact a lender who specializes in these programs. You'll need their help to navigate the process.
LUX Move Up* by Christine Aldrete Banks, CRS, SRS, RSPS
*Buy and sell with Christine in the same year and receive a full rebate of the lesser commissions upon execution of both closings! Call for details.
Find out what your home is worth with a Free Market Analysis
50% OFF Select Listings for a limited time. Sell your home in North San Antonio for half the usual listing fee, with all the perks included, during this special event. For more information contact Christine Banks, CRS,SRS,RSPS at (210) 570-9530 or Christine@StoneOakLiving.com