How Much Cash Needed to Buy a Home?

How much do you need to buy a home?  Here are some facts you should know……



Zero Down

If you are a Veteran, then you can access the VA Home Loan.  With the VA Home Loan, there is a strategy called the VA No-No.  This allows the Veteran to move into their new home without no money out of their pocket.

Another “No-Down Payment” loan is the USDA Home Loan.  This program is offered to certain areas; usually the more rural areas and you must qualify based upon your income.  If you do buy in the USDA areas and you do qualify based upon the income factors, then you can purchase a home with no down payment.  And with the Seller Concession strategy, just like the VA Home Loan, you can move in with no money out of your pocket.

Down Payment Assistance Programs

Down Payment Assistance programs are back in the marketplace and they are funded!  Explore the Home in Five, or the City of Phoenix, NSP.  Your Loan Officer will be able to share other programs with you that you may qualify for.  When using Down Payment Assistance programs, be sure to understand your obligations and requirements.  You most likely will need to attend a certified Home Education Course as well.  Your Loan Officer will guide you on what you are responsible for.


One of the most popular loans in recent years is the FHA Home Loan.  This loan is guaranteed by the government and has relaxed underwriting guidelines.  You only need a 3.5% down payment and this down payment can be Gifted to you by family members or even borrowed from your 401K.  Credit score requirements are usually lower as well.


Conventional loans are available with down payments as low as 5%. This 5% down payment must come from your own funds (no Gifting allowed).  Fannie Mae and Freddie Mac underwriting guidelines must be followed when using these conventional home loans.  Your credit score will determine your pricing, so the higher your score, the better your rates.  Talk with your Loan Officer and they can help prepare you.

Buying a home these days is all about STRATEGY.


Karen Jones Banner with Disclosure




AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ  85203 (NMLS # 145368). 1-877-276-1974. Copyright 2018. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. Click Here for Licensing Information. The services provided by Karen Jones are not a condition, nor do they create any obligation for any form of remuneration for any real estate settlement service related to any referral.  The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Karen Jones does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Karen Jones will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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