Saving for a home


Saving for a home? You may not need as much as you think….


QUICK DISCLAIMER: I am NOT a mortgage specialist, so any information provided here should not be taken as advice given by a licensed mortgage professional.


Before we go any further, I want to be “on record” by saying that I  believe it is in EVERY borrower’s best interest to purchase a home with at least a 20% down payment - (ex: if you plan on buying a home for $400,000, then your down payment would be $80,000)  Additionally, you would also need to account for closing costs which, depending on the area of your home, could be upwards of $15,000. people normally have $95,000 saved up to purchase a home for $400,000? Based on the buyers that I have worked with, and done business with,  it is becoming a rare occurrence.


How does someone buy a home if they do not have the preferred amount of money down? Your lender is key! Whomever you choose to help with your financing can explain all of your options since situations vary with each individual.  However, I am here to provide some basic information which you may or may not have known about. Again, you should always verify this information with a licensed mortgage specialist as certain programs may have changed at the time of this writing.


  1. The FHA Loan- by far the most popular right now. The Federal Housing Administration has come up with a loan program that will insure these types of loans for qualified federal lenders. Subsequently, this allows them to offer you a product that only requires a down payment equal to 3.5% of the purchase price.  Although this loan has a lesser down payment requirement, than other conventional loans, it does come with certain fees associated with this type of financing.  Read more about it HERE


  1. The SONYMA DPAL Loan - Allows borrowers to procure down payment assistance through the use of a second mortgage. This is combined with current SONYMA mortgage programs and have great benefits like no interest rate and no monthly payments as long as you adhere to the program guidelines within a set period of time. Read more about it HERE


  1. The USDA Loan - Allows for no money down and can often have lower rates than other mortgage loan programs. Read more about it HERE.


As you can see, the above mentioned are just a few ways buyers can obtain a home with different down payment options.


Lastly, once you have your financing in place, with your pre-approval, then you can get to the fun part of searching for homes right here at


Below is a great article that I found going over this very same topic




Stephen Zondorak

Licensed Real Estate Broker

Astor Lane Realty