Good morning. Thank you for tuning into Red Lion Realty’s YouTube channel. Today’s topic of discussion is going to be how much of a down payment do you need?. There’s a lot of myths out there and we have Denise Tomasini with Supreme Lending. Denise, can you go over so some of the myths that are out there?

I would love to. Thank you Richard. so we hear a lot, quite often from the consumer about 10% down 20% down that the consumer believes that they’re going to need this large downpayment, which is actually not the case, you can get into a home with as little as 3% down or in some cases even no money down.

Tell us about some of the different types of down payments and programs available to the consumer Denise.

Absolutely. So there’s lots of options out there Richard for the consumer, that are available to you and some of them could be your FHA, Conventional, VA and USDA. And all of these products are great products, they serve different purposes for the consumer. And that’s really where your lender comes in, sitting down with the consumer and advising you. So FHA for example. could be as little as 3 1/2 percent down, Conventional would be 3% down, USDA of course it’s no money down and VA is no money down. And all of these products work very well with your grant funds and down payment assistance programs, you do have to meet the income limits and the credit score limits and that’s something we could go over with the consumer on an individual basis.

And there’s a lot of times that people have done payments that they’re not aware of, like 401k’s correct?

Absolutely. There’s 401k gift funds from a family member could be a brother sister grandma, grandpa. And you also have gifts of equity that we can talk about that. In those instances where a borrower is purchasing a home from a family member. There’s lots of options out there for you. So before you go rent or you’re looking at your rent, talk to Richard, talk to us, let us look at things for you. Because, owning a home is out there and the financing is readily available to the consumer.

On a final note, PMI and MI is very confusing to consumers. Can you take a second and highlight that for us as well?

Absolutely. So MI and PMI as your mortgage insurance and what mortgage insurance does is it protects the lender. It really protects the investor. And what that does is it says if you’re putting less than 20% down that you would pay you would be required to pay mortgage insurance and mortgage insurance, what it does is it basically almost like a life insurance policy that if the consumer defaulted on the mortgage loan, and the bank ended up taking the loan back that they would cover 80% of the loan amount the balances left on the property would be paid through an insurance policy to the investor. So it does nothing for you as a consumer it really protects the lender, the investor. In private mortgage insurance, in most cases, would be on a conventional loan. Mortgage Insurance is more of your government, your FHA or VA loans. And again, all of these products are great products, they serve different purposes for the consumer and we would want to look at that on an individual basis to make sure we’re protecting the consumer looking at the financing that’s going to best benefit your needs and working with you. Richard and I work together as a team for customer, we care. We work for a lifetime relationship with the consumer, and give us a call.

We want to thank everybody for tuning in. If you would please like and subscribe. If you’d like to drill down deeper into any of these topics, feel free to reach out to Denise Tomasini at Supreme Lending at…

Absolutely 713-829-8981 or the office 281-968-3651. And we are a equal credit opportunity lender, my license number is 220553. Thank you.