Posted by Jaymie Tarshis on 3:18 PM with No comments
Don't let down payment funds be the end to your dream of home ownershipFor many, the dream of becoming a homeowner is far from sight mainly due to loan programs requiring a higher down payment. Coming up with 10 to 20 percent of the purchase price can be quite the financial strain and most home buyers are now seeking lower down payment options.
The good news is, there are still a few programs out there that require little to no down payment for a mortgage loan. The Federal Housing Administration insures loans with small down payments and private mortgage insurers have also lowered their down payment requirements.
It's even possible to get a mortgage with no down payment through the Veterans Affairs and the Department of Agriculture.
Below you will find a few options for low down payment and zero down payment home mortgages:
If you are a qualified veteran you may qualify for this no-down purchase program. Lenders originate the VA loans and the VA guarantees it. The borrower is required to pay a funding fee, which can vary, but the entire cost can be rolled into the loan.
- No down payment: VA Loan
One of the biggest advantages of this loan is that there is no mortgage insurance required. On a standard $200,000 loan, the borrower would have to pay almost $200 a month in mortgage insurance.
To find out more information on VA loans or to see if you qualify fill out an online application by clicking here.
The Rural Development mortgage guarantee program by the U.S. Department of Agriculture is so popular that it often runs out of funds before the end of the fiscal year. This program is like a VA loan where all the costs are rolled into the loan except it does exclude higher income families. There is an income restriction as well as an geographical restrictions to where the home can be bought.
- No down payment: USDA Loan
Some home buyers might get discouraged to hear that the program is only available in specific rural areas set aside by the USDA but a lot of the time a USDA qualified area is within a 10 to 20 mile radius of a bigger town.
It's worth it to call a licensed representative and find out what USDA qualified areas are around you today.
To find out more information on USDA loans or to see if you qualify fill out an online application by clicking here.
Most assume that with an FHA loan, a high down payment is required. However, this is not always the case. The FHA has a low-down payment option that requires buyers to only put down 3.5 percent.
- Low down payment: Federal Housing Administration
Statistics show today that about 15 percent of all home loan borrowers get FHA insured loans.
To find out more information on FHA loans or to see if you qualify fill out an online application by clicking here.
For buyers wishing to put less than 3.5 percent down on a purchase, there is a Fannie Mae Conventional program that requires only 3 percent down. Among these other low down payment mortgage programs, this Conventional program is unique because it allows the down payment to be the buyers cash or gift entirely.
- Low down payment: Conventional Loan
Conventional programs are often less costly than FHA loans, but depending on your scenario you may want to consider both options. The program is valid for 1-unit homes only and the loan size cannot exceed $417,000.
In today's housing market, there are multiple home loan programs that offer low and no down payment options. Remember to use the above guide for reference when speaking to your loan officer about getting qualified. Together, you will you be able to find the best for your situation.
You Deserve To Be a Homeowner
Staying up to date with today's financing options can go a long way when it comes to how much money you will need to bring to the table.