COLORADO SPRINGS — It's the American dream - owning your own home. However, to achieve that dream most of us will need a loan. Our partner at Carlson Financial explains some different home loan options to consider.
Carl Carlson, CEO of Carlson FInancial, said, "Most people really want to own their home instead of renting."
Getting out of the rental game is something many of us want at some point.
"Generally, most people won't because they think it's going to take so much money. I can never come up with it."
Carlson is talking about a down payment and loan for a house.
"A conventional loan, if you don't want to have to pay the mortgage insurance, you need about 20% down. So on $200,000 that's like $40,000 that you would have to come up with."
For a lot of people that much money is pretty tough to swing. Even putting 5% down can be daunting. That's why Carlson wants you to consider some other options.
"The VA has 0% down loans...USDA has some 0% down loans, but that's if you live in rural areas, certain specific regions."
There are also some state or local loans.
"That might be for someone like a teacher or for a firefighter."
If you don't fit into any of these categories Carlson said, "Your next best step is going to be the FHA loan...you're going to have to come up with about 3.5% down."
Carlson said if you are thinking about buying a house go out and get pre-qualified. Based on your down payment you'll be able to find out how much of a loan you can get.
Carlson Financial is a sponsor of Financial Focus.