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Real estate: A common myth about a downpayment in New Jersey

When every last penny counts these days, it’s hard for some people to save for the downpayment on a house. There are some things New Jersey residents should know about buying real estate in the state. And one of those things is that a downpayment on a home in New Jersey to qualify for a mortgage is lower than many people think. 

A survey in 2016 suggested most New Jersey residents believed they needed at least 20% down to purchase a home. That percentage isn’t always necessary. In fact, the average downpayment in New Jersey is 10% and in some cases that could be even less. There options available about which many people don’t know.

There are loans available that go as low as 3% for a downpayment. And members of the military have options of receiving 100% financing of a home. Another thing many people don’t realize is that many mortgage products allow potential purchasers to use gifted money as a downpayment. If a family member wants to help with a downpayment, he or she must sign a statement indicating the money is a gift and doesn’t need to be paid back from the receiver.

There are many downpayment options out there. New Jersey residents thinking of purchasing a home might want to talk to a real estate lawyer about the ins and outs of the industry. He or she can not only answer questions pertaining to the legal aspects of the real estate industry, but is also likely knowledgeable about other areas pertaining to buying or selling a home — like downpayments.