Tuesday, February 7, 2017

Those Low Down Mortgages


Going back 10 -12 years ago or more, it was common to be able to buy a house with no money down. Zero percent financing was easily available. These types of home loans and "no documentation" mortgages were primary causes of the financial crises.

Today although mortgage guidelines are stricter and full documentation is required, there are safe low down payment mortgage options available.

3% Down Payments - Fannie Mae and Freddie Mac aren't lenders but the do buy loans that lenders make, allowing them to take more risk on creditworthy buyers who do not have a large amount of cash available. One program allows first time buyers or buyers who haven't owned a home for the past 3 years to put just 3% down on loans up to $417000.  The down payment can come from a family gift or your own. These loans require mortgage insurance as do most low down payment mortgages.

3.5% Down Payment - FHA (Federal Housing Administration) guarantees loans made by lenders allowing them to approve more low down payment buyers. The loans also require mortgage insurance but qualifications are less stringent than most.

1% Down Payment - New mortgages have emerged over the past year allowing as little as 1% down Buyers with 680 credit scores or higher and earning less than the median income for the area may qualify to receive a lender grant for 2% of the purchase price and 1% from the buyer giving a buyer a 3% equity at closing with just 1% down.

To determine your own qualifications for any of these low down payment programs, you'll need to get a pre-approval. Call me 561-306-6736  or email me and we can get those answers together and start the process of finding the perfect home and financing for you. 

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