Today we’re discussing some programs today that could work for those who may be interested in a low or no down-payment loan option!
The United States Department of Agriculture created a housing program to encourage rural development. This loan offers a zero-down mortgage for low to moderate income families looking for a home in low density, rural areas. You can click here to browse the areas by state. A benefit of USDA loans is that the mortgage insurance premium is significantly lower than other programs available. Compared to a 0.85% FHA loan, the USDA loan is 0.35%. This annual MIP fee is added into your monthly payments.
FHA loans, were created by the Federal Housing Administration to encourage home ownership. Therefore, these loans are flexible. If you have a credit score of at least 500, you can qualify for a 10% down payment. Alternatively, if your score is 580 or higher then just 3.5% of the home purchase price is required.
There are also VA loans which are strictly available to U.S. Veterans. This loan program offers 100% financing which means no money down along with no mortgage insurance required. There are also Down-Payment Assistance Programs for first-time home buyer which are specifically for those buyers purchasing their first home.
The credit requirements for lenders do vary with some programs, so get in touch with one of our lenders today!