We always recommend our clients speak with an expert mortgage consultant prior to looking at homes and to re-evaluate their current mortgage situation often.
I was talking to a close friends about their condo situation last week and again was reminded how important it is to meet with a mortgage professional... ASAP. My friends' desire is to sell their condo and buy a single family home for their growing family. They have valid worries they won't get as much as they'd like from their condo sale and they also assumed you need 20% down to buy a house.
In most cases you do not need 20% down to buy a home to get very low mortgage interest rates... and in many situations I would NOT put 20% down on a house (my opinion) with today's low mortgage rates and if buying well within my monthly budget. In several conversations I've had with lenders, those who have put 20% down rather than 10% down on recent purchases were the people more likely to default. They had less cash on hand for living expenses and no cash when their homes dropped in value.
FHA and conventional conforming loans allow low down payments on homes... single family homes and two-three flats are many times easier to buy these days with low down payment products. The key is to be responsible and understand your finances. You may find your mortgage payment is very affordable today even with a low down payment.
Call Steve Dunnett, Senior Mortgage Consultant at 312-462-7709 to discuss your options.