Low Down Payment Home Loan Options
When it comes to buying a home, often times first time home owners wonder what low down payment home loan options there are available for them. The good news is, there are several different options that could be suited for many different folks throughout America.
First, we”ll start with the no down payment home loan options.
Low Down Payment Mortgage Option #1 – The VA Home Loan
A VA home loan is one designed specifically for veterans of America’s armed forces. This can be an attractive option for veterans. It allows them to buy a house with no down payment and it has extremely attractive interest rates. Often times interest rates are slightly lower than on conventional loans. A lot of lenders will go as low as 580 for your credit score. However, a lot of lenders will only go down to 620. As you can imagine, your mortgage price varies depending on the market, your credit, and your equity position. If you’re serious about getting into a home, you should have a good understanding of your mortgage numbers.
Low Down Payment Home Loans #2 – The USDA Loan
The USDA loan allows people to buy a home with absolutely no down payment. This option also can have extremely attractive interest rates is well. The only catch con is that you can’t use this loan everywhere in America. This loan can be used only in cities or towns that are populated with 10,000 people or less. However, the cool thing is that many of the maps are not updated. So you could potentially live in a town that has slightly more than 10,000 people and still qualify.
Low Down Payment Mortgages Option #3 – Conventional loans backed by Freddie Mac and/or Fannie Mae
Using this type of loan you can purchase a home with as little as 3 to 5% down depending on your credit etc. This low down payment home loan option requires a credit score of 620. Unlike the VA loan and USDA loan, there are no special requirements outside of the normal
income and credit guidelines. Anyone that meets the credit and income requirements can use this loan option. Further a, it’s not geographically restrictive like the USDA loan.
Low Down Payment Home Loan Option #4 – FHA Loans
With an FHA loan, you can buy a home with as little as 3.5 percent down. It is possible to get an FHA loan with a credit score as low 500. However almost every lender out there will only go down to 580. Again, with an FHA loan there are no special requirements like a VA loan and USDA loan.
Also, if you are willing to and / or can find a HUD/FHA foreclosure, there is an option that allows you to buy a HUD foreclosure with just $100.00 down (plus closing costs). You can search for HUD foreclosed homes at this website –> HUD Home Store.
Low Down Payment Mortgage Option #5 – DPA aka Down Payment Assistance Programs
Various States and jurisdictions offer down payment assistance programs for the areas they serve. A DPA can be used as part of your down payment and/or towards closing costs. The programs do vary so be sure to check with a local lender or broker to see what options might be available. Often times these are just secondary loans that either have a payment that starts right away or sometimes somewhere in the future. In a few select areas these can also be issued as grant money with no repayment required. Naturally, these are harder to come by.
As you can see there are several low down payment home loan options available. If you are ready to stop renting and start owning, shoot us an email and ask to get preapproved. Info@ReverseMortgageLoanAdvisors.com
And of course, if you’d like reverse mortgage information, visit our page –> Reverse Mortgage Info