The housing market has been on the rise for a while now—and with rising home prices and economic stability, mortgage lenders are getting more lenient on who they will lend to and how much they will lend. If you’re looking into buying an Irvine, California home through a conventional mortgage, you may be able to put down as little as ten percent.
Ten percent down payments have been extremely uncommon since the housing bubble burst, according to online real estate news platform Zillow. Mortgage lenders have been pretty strict on the requirements to qualify for a mortgage, but they have been loosening up in the last few months. Several lenders throughout the country have been offering ninety percent mortgages to home buyers as an incentive, although you’ll generally still have to have a credit score of around 700. This can be a great thing for potential home buyers that don’t have the means to come up with a large lump sum of money to start off the transaction on their potential Irvine home.
Only being required to put down ten percent has benefits for home buyers that could have come up with a larger down payment as well. Of course, putting down a larger down payment will be financially better in the long run, but if you purchase a home that needs several repairs or you want to remodel one of the rooms in the home, turning that twenty percent down payment into a ten percent down payment while using the remaining ten percent on repairs and renovations can save you some hassle down the road. The additional ten percent can also be used to diversify your investment portfolio or other financial ventures like contributing to the college fund for your children.