If you’ve been waiting to purchase your first Beacon Hill condo because you haven’t been able to save 20% of the cost for a down payment, we have some good news! You don’t need 20% down. In fact, you may not even need 10%.
So how do I go about buying with less than 20% down?
Just as there are a wide variety of market factors that affect the price you pay for a Beacon Hill condo, there are similar variables that can affect how you go about financing your purchase. If you have excellent credit (generally described as a credit score of 700 or above), you will almost always qualify for lower interest rates on your loan, which can translate into a lower down payment as well. The types of financing you have available to you can also make a large difference in how much of a down payment will be required.
How do I know which type of financing I should get?
A good real estate agent in Beacon Hill will have working relationships with lenders from a variety of banks and mortgage brokers, and should be able to direct you to a lender that has proven themselves knowledgeable and trustworthy. The lender’s job is to get you a loan, and you will want to work with a lender who will present you with all of your financing options, so you can make an informed decision. Your choices might include getting a conventional loan (which usually requires the highest down payment), and FHA loan, VA loan, or other type of financing.
What else should I know?
If you’re a first time Beacon Hill condo buyer, there may be even more low down payment options available to you. The federal government and many state and local governments offer a wide variety of programs to help first time home buyers purchase their first property, with some allowing for as little as 3% down.
Whatever financing route you choose, the first step to a low down payment begins with you. Get out there, contact a reliable real estate agent, and start your search for that perfect condo or loft in Midtown Boston. For more information about loft or condo buying in Downtown Boston, reach out to us and take the first step to purchasing the Beacon Hill home of your dreams!