Down Payment Solutions

Undoubtedly, the burden of a downpayment can feel like a block to homeownership. In spite of this, I have good news! There are lending solutions available to help clear the way to your home purchase.

What is a down payment?

A down payment, a home buyer 101 term, is the cash contribution, which is the percentage of the purchase price of a home. Typically, a buyer will contribute a downpayment, the agreed amount, from her own funds.

In a common scenario, a buyer will contribute at least 20% a home purchase price in her own funds. Fortunately, the motivation to get more borrowers in to homes has shaped more flexibility with these terms. As a result, borrowers now have several other options that require low to no downpayment criteria.

Five Low to No Down Payment Options to Consider:

FHA Loan

Federal Housing Administration (FHA) loans allow for a 3.5% down payment. A buyer with an average or lower-than-average credit score, will find this to be a forgiving home loan option. However, it does require a mortgage insurance premium (MIP). Good news, down payment funds can come from gifts, too!

Conventional Loan

Both FNMA and FHLMC have 3% down payment options for those who qualify under certain income or geographic restrictions. Furthermore, these programs also offer 5% down payment options for almost all borrowers. Need to renovate a home? For that reason, we can lend up to 95% via a conventional loan.

VA Home Loan

Veteran Affairs (VA) loans are available for active-duty, honorably discharged military service members and many surviving spouses. And most VA loans feature no down payment requirements. Most noteworthy, one of the benefits of a VA loan: No monthly mortgage insurance premiums!  Hence, this make VA loans very desirable along with competitive interest rates.

USDA Loan

US Department of Agriculture offers 100% financing for working families in small communities. Although, this program is income and geographically restricted, and some suburbs and smaller cities are eligible for USDA loans.

Portfolio Loan

Contact us for the details.

Wondering what down payment options are best for you?

The short answer is: It depends. Generally speaking, there are various considerations including how much income, debt and credit score to name a few. In conclusion, if you are ready to explore in more detail, connect with me via my contact link. We can review the best tactic for your personal home finance strategy for you today.