Did you know you DON’T have to have a 20% down payment to purchase a home? Hey there, Jenevieve Croall here with JLUX Homes Realty Group. With so many people putting their money to work instead of stashing it away, paying a 20% down payment on a home isn’t always an option. So I’m here today to tell you about four popular loan programs offering excellent opportunities to people who don’t have big down payments at their disposal.
Number 1 is an FHA Mortgage. If you’re struggling to get loan approval or have some credit challenges, then the Federal Housing Administration’s 3.5% down payment option may be just the loan for you. This loan is especially popular with first-time home buyers.
Number 2 is the VA, No Money Down Loan. This loan is designed for active-duty members, veterans, and surviving spouses; the VA loans program requires zero down and offers the lowest rates of any mortgage loan, along with insurance exemptions.
Next up is number 3, a Conventional 97 loan. A conventional 97 loan is a mortgage loan that requires a down payment of just 3%. The “97” in the name refers to the loan-to-value ratio of 97% that you’ll have when you close on the loan with cancellable insurance at 20% equity. Last but not least is number 4, USDA Mortgages. These affordable, fully-financed, US Department of Agriculture-backed loans require zero down and are perfect if you’re moving to a rural area where you earn below 115% of the median income.
Well, there you have it—a few of my favorite loan options that DON’T require you to have a 20% downpayment. For more details on any of these loan options or to discuss a detailed plan for your unique situation, give me a shout. I’ll connect you with our loan expert, and we’ll have you in your new home in no time! Until next time…