It’s a jungle out there
The home buying marketplace is fierce and has been for most of the past two years. A severe lack of inventory increased bidding wars and ballooned housing values at unprecedented rates.
This can feel daunting if you aren’t bringing an all-cash offer to the table. But despite the challenges, we spoke with five experts who said buying a house with either a low down payment or down payment assistance (DPA) is both doable and realistic.
You just have to enhance your profile in other ways — like reducing your time to close — especially as a first-time buyer.
Can a low down payment actually get you a house?
Yes, it’s tough to win over a cash buyer. But that’s tough regardless of your down payment amount.
“The down payment is just simply a part of the equation. It shouldn’t be a detractor or put [the borrower] in a lesser position with their offers.”
—Todd Pankratz, senior LO and branch manager, Wallick & Volk Mortgage
If you’re a low income borrower or only have enough money for a low down payment, fear not. The old and outdated adage that you need to put down 20% of a home’s purchase price is just that; old and outdated.
Todd Pankratz, senior loan originator and branch manager at Wallick & Volk Mortgage
“If the borrower’s review is done, they’re well qualified, fully pre-qualified or pre-approved, then the down payment is just simply a part of the equation. It shouldn’t be a detractor or put them in a lesser position with their offers.”
Nearly every low down payment home buyer has a loan type that’ll work best for them — including options you probably haven’t heard of. If your path to homeownership starts with a low down payment, speed might be the best way to improve your bid.
Tips to succeed with a low down payment