Low Down/No Down Payment Mortgage

Don’t let the down payment amount stop you from taking the mortgage that you have long been saving up for. Be informed. You have options to help you land a low down or no down payment mortgage where some cases even get an amazing zero down mortgage!

In the recent market trend, products and interest rates are favorably good for homebuyers. Whether you are a first time homebuyer or a repeat buyer, you are in a good position to own a home with minimal down and incredible interest rates. This even goes well to those who are credit challenged. Here are your solid options in achieving the low down/no down payment of mortgage:

The FHA Mortgage
      For first time homebuyers and people who have experienced past credit issues, FHA is a great choice. Through FHA, you can achieve a low closing cost on your mortgage. Only a 3.5% down payment is required and 100% of this can be fund gifted to you by friends or relatives.
      With its HAWK program, first time homebuyers get a reduced mortgage on their insurance premiums. And, for those who had experienced recent short sales, foreclosures or bankruptcies, you need not to worry much. FHA have a back to work program that can support those types of homeowners too.
      In summary, FHA programs offer great flexibility for homebuyers with minimum credit score and other compensating factors.
The Conventional 97 Program
      The conventional 97 program is an incredible product by the Federal Home Finance Agency. It is actually more advantageous than FHA since it requires a low down payment of just 3%. Like FHA, the entire 3% down payment can be gifted funds.
      Traditional credit score guidelines vary from lender to lender. However, what makes this program incredible is because you get to save ½ of a point over an FHA mortgage. You don’t have to pay the 1.75% mortgage insurance fee required with FHA. Also, you may qualify for lower private monthly insurance premium depending on your annual household income.
The Veterans Affair loan or VA guaranteed home loan
      This mortgage program is offered for those who have served our country. Either an active serviceman, veteran, National Guard, reservist or a surviving spouse of the US Military. Those who are eligible for this program may avail of a mortgage with zero down payments!
      Since it is backed and guaranteed by the US Department of Veteran Affairs. It is fairly safe to say that, financing of these loans is surely at 100% of the mortgage amount.
The USDA Mortgage
      For non–military borrowers, USDA also offers a mortgage with No Money Down option. This program by the U.S. Department of Agriculture is formally known as Section 502 mortgage or the Rural Housing Loan.
      While many may think that this mortgage only caters for rural areas such as cornfields and places in the middle of nowhere. Actually, this notion is untrue. Rather, what’s great with this program is that there are many suburbs that may even belong to major US cities that are included in this program. Hence, this is the reason why it could be the lowest possible home ownership mortgage that you can obtain.

Lowest Down Payment Option: Choosing What’s Best For You

There are so many people who never even try to obtain a mortgage simply because they do not know where to start. While others are won over by fear of their credit score, most are worried of having not enough money for mortgage down payment. As a result, it becomes a drawback for families and keeps them from getting their dream homes.

Do not waste you time worrying. No matter your credit score, financial situation or status, there will always be an option where you can reduce your initial cash out and interest rates. So, seek the advise of a Realtor to help you understand all the necessary details of each program. A professional can help you identify your choices and assist you. Finally, with all the info you can decide what’s best for you and your family.

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