A home is a major asset and naturally, it requires a sizable investment. In fact, it’s possibly the biggest investment in the life of an average American. Are you planning on buying a home in New Mexico? If so, then arming yourself with market research is key. Also, make sure and shop around to understand the offerings of multiple lenders so you can examine the market landscape in great detail.
The New Mexico real estate industry is ripe with valuable investments and luxuriously appealing properties. It is definitely one of the best times to buy a Home in New Mexico. When it comes to buying a home in Albuquerque, it is crucial for buyers to prioritize pragmatism and research to make well-informed decisions. This being the case, we wanted to share some important information for first-time homebuyers.
Here, take a look:
Funding & Down Payment
Most potential buyers planning on buying a home in Albuquerque believe that they require a 20% down payment to purchase a home. This is usually why they end up spending a significant chunk of their lives renting instead of buying. It’s definitely not easy saving up for a huge down payment. This is especially true given modern-day inflation and living expenses.
We are immensely disappointed in the lending community for failing to deliver education and awareness about the various low and no down payment options available for buyers from low-income backgrounds.
Fortunately today, buyers have access to a great many options that facilitate low or no down payment so buyers can enjoy enhanced flexibility.
These programs include:
- Veterans Administration (VA) Benefits: Veterans and active military personnel can enjoy 100% financing without any down payment.
- United States Department of Agriculture (USDA) Loan: A USDA loan offers 100% financing to facilitate homebuying investments.
- Federal Housing Administration (FHA) Loan: A federal program, FHA loans offer financing with 5% down payment.
- Down Payment Assistance (DPA) Programs: State and local housing authorities facilitate homebuyers with down payments.
These programs facilitate buyers with 100% of the cash required for closing from a gift. Moreover, if you’re buying a home in Albuquerque, keep in mind that your seller can also contribute towards the closing cost to somewhat reduce your financial burden and purchasing costs.
It is crucial to shop around for rates and conduct thorough research to identify the right mortgage program for your financing needs. Most private lenders tend to dissuade first-time buyers who lack experience and are unaware of market trends.
The federal, state and local governments have several programs designed to assist buyers to actualize their dream of homeownership. These programs will help you invest in a home of your own with little or no money saved up for your down payment. Market research and loans require extensive research to equip you with information to navigate the market.
If you need further assistance on how to buy a home in New Mexico with little or no down payment, feel free to reach out to our team for further guidance. We will be happy to walk through your options in more detail and guide you towards the right option.