Welcome to this week's Mortgages with Melinda!

This week, we're diving into strategies for buying a house with minimal out-of-pocket expenses. There's a common misconception that you need a hefty 20% down payment to qualify, whether you're a first-time buyer or seasoned homeowner.

Did you know you can secure an FHA loan with a low down payment, regardless of whether you currently own a home? We're here at The Truth About Lending to guide you through various options that can minimize your upfront costs.

For first-time buyers, there are numerous programs offering grants or zero-interest loans for down payment assistance, and some programs allow a low down payment. Even if you're not a first-time buyer, FHA loans require only 3.5% down, while conventional loans can be secured with as little as 5%. Freddie Mac loans, a type of conventional loan, also offer options that are low down payments.

It's crucial to speak with one of our loan officers who can walk you through every step, discussing all your options. Sellers can also contribute significantly to closing costs—up to 3% or 6% of the sales price—depending on your down payment and chosen program. This negotiation can drastically reduce your upfront expenses.

For example, if you're eyeing a $400,000 property, offering slightly above market value and negotiating for the seller to cover $10,000 in closing costs can effectively lower your cash-to-close amount.

Additionally, we offer various lender credits to further reduce closing costs, though in Florida, high insurance premiums can contribute significantly to these expenses.

Keep up with the latest Florida real estate market news by joining us weekly!

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