Buying a home in Roseburg Oregon is an exciting experience, but there are many moving parts to the process. The first step is figuring out how much money you need to have for a down payment. Here’s what you need to know about the different loan programs, which will in turn help you determine how much money you need to put down when buying a home in Roseburg Oregon!
So how much do you need for a down payment on a house? The simple answer is, it depends on the loan program. Depending on your debt to income ratio, credit, and employment, there are several different routes you can go when obtaining a home loan with various down payment sizes. Let’s dive into the different loan programs that are offered in Roseburg Oregon.
USDA is a government backed loan and is through the same entity that stamps our meat, which is crazy! That’s not even the best part. USDA loans are 0% down loans, meaning you don’t have to put any money down! If you qualify for a USDA loan in Roseburg Oregon, you can likely get into a home with less money than what it would take to get into a rental with your first and last months’ rents and security deposit. We’re actually very lucky to have this program available to all of Douglas County, as this program is only offered to less populated rural areas.
VA (Veteran’s Affairs) Loans:
VA loans are another great option, because like the USDA loan, this is a 0% down loan, meaning no down payment! To qualify for this awesome program, either you or your spouse would need to have served in the military.
FHA loans are another government backed loan program which offers a higher debt to income ratio. If you have higher amounts of credit card debt or car loans, you might be able to be approved with an FHA loan. FHA loans require 3.5% down, which may not sound like a lot, but when you calculate this based on the average priced home of $250,000, then we’re looking at a down payment of $8,750. Most people would consider that a good chunk of money! Another advantage that FHA loans have over USDA loans is that they allow you to finance manufactured homes.
A conventional loan is the most common loan type. Most people think you have to put 20% down for this type of loan, which is not true. The standard minimum for conventional loans is a 5% down payment, which is really not that much different than an FHA loan. If you’re a first time home buyer, you may qualify for the conventional 97, which requires only a 3% down payment! That is even cheaper than the FHA loan. The biggest benefits of a conventional loan over one of the government backed programs is the fact that they are much less strict.
For a home to qualify for USDA, VA, or FHA the home has to be in really good condition. Conventional loans have less condition requirements, which is likely due to the fact that you are putting more money down. The benefit of using the government backed loan programs is they typically have a lower interest rate and down payment than the standard conventional loan.
So as you can see there are many options out there. If you don’t have a big down payment saved up you still may be able to get into your dream home. If you’re thinking about buying or selling real estate in the next 12 months here in Roseburg Oregon or the greater Douglas County area, reach out to us here at The Beckham Group and we’ll be happy to get you set up with a lender who can hook you up with any of these programs.
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