Low Down Payment Options
For those who may be interested in low or no down-payment loan options, we’re discussing some programs today that could work for you!
The U.S. Department of Agriculture created a housing program plan to encourage rural development. The loan offers a zero-down mortgage for low to moderate income families looking for a home in low density areas, click here to browse the areas by state. Another benefit of USDA loans is that the mortgage insurance premium is much lower than other available programs. Compared to an FHA loan at 0.85%, the USDA loan is 0.35%. This annual MIP fee is added into your monthly payments. To elaborate on an FHA loan, it was created by the Federal Housing Administration to encourage homeownership. Therefore, these loans are very flexible. If you have a credit score of at least 500, you can qualify with a 10% down payment. Alternatively, if your score is 580 or higher then 3.5% of the home purchase price is required.
There are also VA loans available to United States Veterans. The loan offers 100% financing so that means no money down and additionally, there is no mortgage insurance required. In addition to VA loans, there are also First-Time Homebuyer Down-Payment Assistance Programs. These are specifically for those buyers purchasing their first home.
The credit requirements for lenders do vary with some programs, so get in touch with one of our lenders today!