Getting over the down payment hurdle can be tough. For first time home buyers, it may feel impossible. However, getting a loan on a home may not be as difficult as you think. With these no or low down payment options, buying a new home is within your reach.
Good news! Mortgage insurance premiums on FHA loans are set to decrease by 0.25% on Federal Housing Administration–insured mortgage loans that close on or after Jan. 27.
Mortgage lenders allow financial gifts to first time home buyers that can be used towards the down payment on a home. These gift funds are a valuable tool for first time home buyers and may be used for conventional loans, FHA, USDA type loans, and even VA. However, they are most commonly seen paired with conventional and FHA type loans. In fact, many first time home buyers are happy to learn that FHA gift funds can reduce their required cash to zero!
FHA Mortgage – Offers low down payments and is backed by the U.S. Government. –
USDA Mortgage – Zero down payment mortgage available in rural areas. –
Conforming mortgage – Mortgages which meet the guidelines of Freddie Mac and Fannie Mae offer down payments as low as 3%.
The first step to buying any home is financing. Knowing what you are able to afford is essential when searching for a home suited to your individual needs. With so many financing options available, it can be confusing. Every buyer wants to know that they have done the right thing and have chosen the best possible financing option for their particular situation.