Down Payment Options
For those who may be interested in a low or no down-payment loan option, we’re discussing some programs today that could work for you!
The United States Department of Agriculture created a housing program to encourage rural development. The loan offers a zero-down mortgage for low to moderate income families looking for a home in low density, rural areas. You can click here to browse the areas by state. A benefit of USDA loans is that the mortgage insurance premium is much lower than other available programs. Compared to a 0.85% FHA loan, the USDA loan is 0.35%. This annual MIP fee is added into your monthly payments.
FHA loans, were created by the Federal Housing Administration to encourage homeownership. Therefore, these loans are flexible. If you have a credit score of at least 500, you can qualify for a 10% down payment. Alternatively, if your score is 580 or higher then just 3.5% of the home purchase price is required.
There are also VA loans available to U.S. Veterans. This loan program offers 100% financing which means no money down along with no mortgage insurance required. There are also First-Time Homebuyer Down-Payment Assistance Programs which 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!