By Rodel Equity Zone Mortgage
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September 3, 2025
The Truth About Down Payments As a mortgage professional, it's essential to understand the facts about down payments. Here are three key points to consider: Down Payments are Not Always Necessary While a down payment is typically required to secure a mortgage, there are alternative options available. Some mortgage programs, such as FHA loans, allow for down payments as low as 3.5%. Additionally, some lenders offer mortgage options with no down payment required for qualified borrowers. The 20% Rule is a Myth The traditional rule of thumb is that you need to put 20% down to avoid private mortgage insurance (PMI). However, this is not always the case. PMI can be avoided with lower down payments, and some lenders offer mortgage options with lower PMI rates. Down Payments Can Be Gifted In some cases, down payments can be gifted from family members or other approved sources. This can be a helpful option for first-time homebuyers or those with limited savings. However, it's essential to understand the rules and regulations surrounding gifted down payments to avoid any potential issues. For more information on down payments and mortgage options, please don't hesitate to contact me. I'm here to help you navigate the mortgage process and find the best solution for your needs. Learn More: https://www.equityzonemortgage.com Maximize Your Home Buying Power!