Is a lack of cash keeping you from buying a home in San Antonio? Regardless of what you may have heard, you don’t need a whopping down payment to buy a house. “Despite the growing prominence of low down payment mortgages, first-time homebuyers believe they need to put 20% down to compete in today’s market, but it’s not true given current market conditions, according to real estate agents across the country,” said HousingWire.
The article cited a Redfin survey taken in September in which “762 real estate agents in 38 states and Washington, D.C.” were asked about down payment trends in their area. “The results found that more than half of the real estate agents surveyed said the typical down payment for successful buyers in their market was less than 20%. In fact, one in four said a down payment between 3% and 5% was typical among successful buyers. Several industry experts, like Mat Ishbia, CEO of United Wholesale Mortgage, believe that “3% down mortgages will be the new normal.”
Down payment assistance
That’s great news for those who are only renting because they think they can’t afford to buy a home in San Antonio. But there may also be help available for those who need a down payment boost. Houselogic has some “creative ways to build your down-payment nest egg faster than you may have ever imagined”:
- Crowdsource Your Dream Home—“Use sites like Feather the Nest and Hatch My House to raise your down payment. Hatch My House says it’s helped Americans raise more than $2 million for down payments.”
- Look into Government Options—“The U.S. Department of Housing and Urban Development, or HUD, offers a number of homeownership programs, including assistance with down payment and closing costs. These are typically available for people who meet particular income or location requirements. HUD has a list of links by state that direct you to the appropriate page for information about your state.
- Check with Your Employer—Employer Assisted Housing (EAH) programs “help connect low- to moderate-income workers with down payment assistance through their employer. Ask the human resources or benefits personnel at your employer if the company is part of an EAH program.”
Getting homeownership ready
For many of today’s renters, lack of funds for a down payment is only part of the issue keeping them from buying a home in San Antonio. Lender programs from national homebuilders like DR Horton and Lennar Homes can also help buyers get in a better position to buy a home on the Southside at communities like Mission del Lago thanks to free programs that focus on credit repair.
The Home Buyer Solutions Group (HBSG) is a free program from Universal American Mortgage Company (UAMC) that assigns a Mortgage Credit Specialist to “create a customized plan designed to improve your financial ‘health’ and realize your financial objectives,” they said. “An improved credit score not only results in a better interest rate on your home loan and saves you money on your mortgage payment but it can also result in savings on your other loans and debt including credit cards, auto loans and homeowner’s insurance.” This program has helped numerous renters make their dream of homeownership come true in a Lennar home.
The DHI Home Buyers Club is a free service from DHI Mortgage from DR Horton that is geared toward buyers who need help improving their credit. Once enrolled in the club, prospective buyers “work with a personal Credit Consultant who will analyze your credit report and identify strategies for improving your credit worthiness,” they said. Several buyers at South San Antonio masterplanned community Mission del Lago have been able to achieve home ownership this way.
The fastest-selling community on the hot Southside, Mission del Lago is a draw for San Antonio homebuyers—and for those who didn’t know they could become homebuyers. The community offers a range of homes for everyone from first-time buyers to families to veterans as well as those looking for multi-generational living in San Antonio. Prices for these single-family new homes in San Antonio at Mission del Lago currently start in the $160,000s.
This 800-acre San Antonio golf course community, whose location just five minutes from IH-37 and 15 minutes to downtown makes it a prime spot for those who work on the Southside or in the city, offers homes from D.R Horton and Lennar and an array of resort amenities including the 18-hole Mission del Lago Golf Course.
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