Down Payment Assistance
The one thing that keeps people from their dream of purchasing their first home is the down payment. A conventional mortgage requires a 20% down payment, which is a huge amount for most people. Even a modest $100,000 home would require $20,000 in cash. Many Americans do not have that much in savings. Fortunately, you are not limited to a conventional mortgage. There are plenty of other options available that allow you to make a very small down payment, or even no down payment. Most home mortgages that allow a smaller or no down payment require mortgage insurance, which adds to your monthly payment. Even with that added cost, they may be very beneficial to you.
Mortgage Loans with No Down Payment VA Loans
If you’re a veteran, you may qualify for a VA loan, which requires no down payment and no mortgage insurance. Depending on your military service, type of property, and whether this is your first home purchase, you will pay a funding fee somewhere between 1.25% and 3.3%. This fee is folded into your loan, so it becomes part of your monthly payment.
Not all banks and mortgage lender offer VA loans, and it may be difficult to find one in your neighborhood. You can call Real Estate Yogi at 1-800-987-1397 to find a qualified lender who will be happy to provide a VA Loan.
Most people think USDA loans are just for farmland, but they are available for first time homebuyers too, if you qualify. USDA Loans do not require a down payment or mortgage insurance. There is a 2% fee, which gets folded into the loan, and an annual .5% fee each year on the loan balance.
Not all banks and mortgage lenders offer USDA loans, and it may be difficult to find a one in area. You can call Real Estate Yogi at 1-800-987-1397 to find qualified lenders who provide USDA loans.
Mortgage Loans with Low Down Payments
The FHA is a very popular government program that lets you borrow with a minimum down payment of 3.5%. This option is great for first time homebuyers, and even people with less than perfect credit. This option does require mortgage insurance, which is an upfront premium of 1.75%, and then .85% of the mortgage amount annually. On a $100,000 loan, the mortgage insurance would amount to just over $70 a month.
There are thousands of lenders who offer FHA loans, but which is right for you and your specific situation? You can call Real Estate Yogi at 1-800-987-1397 to find qualified lenders who provide FHA loans.
Private Mortgage Insurance (PMI)
If you have good credit, you can get a first time homebuyer mortgage, with as little down as 3%, by purchasing private mortgage insurance (PMI). This is added on to your monthly mortgage payments. The nice thing about PMI is that you don’t pay it forever. Once your mortgage balance has been paid down to 80% of your home’s value, you can drop the PMI.
Which Down Payment Assistance Option is Best?
Real Estate Yogi has a database of over 160,000 professionals that include licensed mortgage lending experts in almost every single zip code in the country. We can connect you to a mortgage lender in your area, who will provide a free consultation on your mortgage options, and which will work best for you.
Get the Best Rates on Low and No Down Payment Mortgages
Call1-800-987-1397 now to get connected to a mortgage lending broker who can find the best mortgage rates available, with the easiest down payment options. One call will save you hours of online searching – and get you into your new home faster with a smaller down payment!
Call Real Estate Yogi forall the Help to Buy Your First Home
Real Estate Yogi is nationwide network of experts in real estate, finance, legal, and home improvement. We answer the phone day and night, and will connect you to the expertise you need. The first consultation is always free, and there’s never any obligation to purchase anything – ever!