Understanding Down Payments: What You Need to Know Before Buying a Home
At The Hive Mortgage Solutions, we understand that the idea of a 20% down payment can feel overwhelming and out of reach for many prospective homebuyers. If you’re looking to buy but don’t have piles of cash lying around, here's what you need to know.

The Reality of Down Payments

First, don’t fret — the average first-time homebuyer puts down just 6%. While a 20% down payment will increase your chances of locking in a low-interest rate and allow you to avoid private mortgage insurance (PMI), there are many types of loans that require far less than 20%.

Loan Options with Lower Down Payments
  1. FHA Loans: Backed by the Federal Housing Administration, these loans require as little as 3.5% down.
  2. USDA Loans: Designed for rural and suburban homebuyers, USDA loans require zero down payment.
  3. VA Loans: Available to veterans, active-duty service members, and certain members of the National Guard and Reserves, VA loans also require zero down payment.
Choosing the Right Down Payment

When you’re ready to buy, the right down payment depends on your financial situation and your home-buying goals.

Schedule a Consultation

At The Hive Mortgage Solutions, we are here to help you navigate the complexities of home loans and find the right fit for your next move. Schedule a consultation with us today and let’s find the right loan for you.


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