How much of a down payment do you really need? The answer may surprise you!

Saving up for your new Home may seem like a daunting task… most people think they need 10…15….. or even 20% down payment ready, well I’m happy to say that is NOT the case!WHY ARE WE SAVINGS
There are many Mortgage Loan options currently available that require little to no money down. Here are a few:
  • VA Loans– these Loans are perfect for our Nations Hero, you’ve worked so hard and sacrificed for our country & now it’s time you enjoy some rewards. VA or (Veterans Affairs) Loans are such a Great opportunity, this program requires NO MONEY DOWN!!! And in many cases the Lender may be able to cover your closing fees as well allowing you to move into your home and save your funds for repairs or other items you may need.   Another benefit to this Loan is that there is no monthly mortgage insurance, there is an insurance fee financed into your loan amount called a funding fee, this may be waived based on your veteran status.
  • USDA Loans– Another Great NO MONEY DOWN option! USDA stands for “United States Department of Agriculture”. This program allows 100% financing for rural properties, but you wont need to move off to the farm…. There are many local towns that qualify! These loans do have household income limits based on county and also have financed insurance premiums, meaning rather than paying private insurance fees monthly the fees are added onto the total loan amount.
  • Fannie Mae’s new Home Ready Mortgage – This program was created to compete with FHA and other low money down options. For as little as 3% down you can utilize a Conventional mortgage and based on certain criteria many lenders are able to offer extremely competitive interest rates! This loan has traditional monthly mortgage insurance, which is not always has bad as you may think. Certain areas and property addresses may have household income limits so be sure to review with your lender before making an offer. In order to make sure you are educated on the process this program does require an online home buying course ( which is a great idea anyway) to make sure you are fully educated on loan terms and other important info. Down payment may be a gift from a family member and no need to be a first time home buyer to qualify.
  • Mass Housing – Mass Housing is an independent public housing authority, their goal is to help homeowners by offering home loans with as little as 3% down payment and reduced or no monthly mortgage insurance. No need to call mass housing directly, most banks and mortgage companies offer this product as well. There are household income limits based on county and also a home education course which can be completed easily online. The credit score requirements are reasonable and for many buyers this product is a huge cost savings!
  • FHA – the Federal Housing Authority is a wonderful Loan program & is one of the most forgiving on the market… with as little as 3.5% down, gifts allowed, low minimum credit scores and lenient seasoning on previous bankruptcy of foreclosures this is a “life saver” for many! There is no courses required and no income limits, this program is also wonderful for 2, 3 or even 4 family homes as long as the buyer is occupying one of the units. It allows for seller paid closing fees and there are some great purchase & rehab options for a home that may need some updating!….

Rebecca D. Gilbert
NMLS 352383
Randolph Savings Bank

RELATED ARTICLES:
NerdWallet
How to buy a house without 20% down
First Time HomeBuyers

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