Tag: down payment
Many of the terms used by real estate professionals are confusing when you are buying a home for the first time. In my experience, two of the most confusing and misunderstood terms used are “deposit” and “down payment.” They both require cash from a buyer. So, you may ask, “What’s the difference?
Mortgage lenders allow financial gifts to first time home buyers that can be used towards the down payment on a home. These gift funds are a valuable tool for first time home buyers and may be used for conventional loans, FHA, USDA type loans, and even VA. However, they are most commonly seen paired with conventional and FHA type loans. In fact, many first time home buyers are happy to learn that FHA gift funds can reduce their required cash to zero!