A Mortgage Refresher

3/6/2015

How much do you really need to buy your dream home? Let me show you low-and-no-downpayment options today.

1. FHA loans: Downpayments as low as 3.5%

Federal Housing Agency (FHA) loans have the benefit of a low downpayment, but there are other loan products with the same option. Be certain to compare the overall costs of all products, including the monthly and long-term costs and conditions of the required mortgage insurance. In many instances, you may find FHA to be a more expensive financing option. For details, visit www.fha.gov.

2. VA Loans: 0% downpayment

Veterans, active-duty service personnel, and reservists deserve to live the American Dream they help protect.

  • Up to 100% financing for qualified borrowers
  • Choice of fixed-rate or adjustable-rate products
  • Funds for downpayment plus all closing costs can come entirely from gifts and grants and waivers

 

 

 

3. Conventional loans

?97% LTV? - the 3% downpayment1

  • For first-time buyers only. At least one buyer must not have owned any residential property in the past three years
  • For 1-unit principal residences only, including condos!2
  • Fixed-rate mortgage with maximum 30-year term
  • Loan limits: $417,000 in most counties and up to $615,250 in high-cost markets
  • Reserves may come as a gift from an eligible donor3

 

 

 

 

 

4. Downpayments as low as 5% PLUS Gift Funds allowed

 

Qualified first-time and move-up borrowers may be able to get a conventional loan for as little as a 5 percent down. In addition, the funds needed to complete the transaction may come from a personal gift from an acceptable donor. This may include funds for all or part of the downpayment, closing costs, or financial reserves.4 

5. USDA Rural Development Guaranteed Housing Loan program: 0% downpayment

 

If you?ve been house hunting in an outlying area, a ?Rural Housing? loan is designed to create opportunities for those with limited savings or modest incomes. 5 There are no minimum downpayment or cash reserve requirements, and closing costs may be financed as part of the loan amount. 

There are a variety of downpayment options available. It?s important to note that loans with low downpayment features may require monthly mortgage insurance which could increase the overall cost of the loan. Contact me for additional details.

 

1Available for qualified first-time buyers and cash-out refinance only.

2Manufactured housing is not eligible.

 

3Acceptable Gift Donors: A relative of the borrower (borrower?s spouse, child, or other dependent, or one related by blood, marriage, adoption, or legal guardianship), a fianc?, fianc?e, or domestic partner.

4Subject to certain minimum borrower contribution requirements. Certain affiliation and relationship restrictions may apply. See your home mortgage consultant for specific details.

5Credit is subject to approval. Property location and income restrictions may apply and homebuyer education may be required.