First Time Buyers
Today there exist several programs for first time homebuyers or returning homebuyers with little or no down payment.
The most common loan for individuals seeking to purchase their first home is an FHA home loan. The income and credit requirements are a lot less stringent that a conventional home mortgage and the required down payment is only 3.5%.
The second most common program is the Fannie Mae 3% down payment loan . While the credit guidelines are not quite as relaxed as FHA, it is still very comparable and does not require upfront mortgage insurance either.
If you are considering buying your first home in a region which has been designated as rural by the US Department of Housing and Urban Development, then it may be possible to do so with new mortgage through the US Department of Agriculture. They endorse a loan which provides 100% financing and there isn’t any monthly mortgage insurance. There do exist specific limits which one of our industry trained loan officers can review with you.
Yet another option that may be available to some new homebuyers is a VA mortgage. Qualified individuals must meet the VA entitlement requirements, but for those that do the VA home loan is an excellent means by which to purchase a home without any down payment and no monthly mortgage insurance.
To help determine what mortgage will be best for you, speak with one of our mortgage specialists today.