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Why 20% Isn’t {Always} the Magic Number

By Amy Patterson

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For many, a 20% down payment is the number to reach when purchasing a home. However, in today’s market and economy, it turns out that many homebuyers, aren’t quite reaching that number. Fortunately, that’s okay.

An increase in rental costs throughout the country has certainly put a crimp in renters’ budgets, making it even harder now to reach the coveted 20%. And in markets like San Francisco, where a 20% down payment is around $153,000, it seems even more unlikely.

Luckily, for homeowner’s who can’t reach the 20% mark, there are tons of options. Loan programs like FHA require as little as 3-5% down, while programs like USDA and VA can provide 100% financing. Want to know more? Check out our First Time Homebuyer’s Study Guide.

 

Source: Zillow

Tags: Market

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