8 Amazing (No to Low Down Payment) Programs for 2018
NO to LOW Down payment loans are not a thing of the past and many of them are available through Government sponsored programs. Most of the loans can be used by Repeat Home buyers and NOT just First Time Buyers.
Do No to Low Down Payment loans really exist? Do you qualify?
You have always dreamed of owning your own home, but high rent payments just make it impossible to save for the down payment. In this article, we will go over 8 programs that many people do not even know exist, especially Realtors.
- HOMEREADY: Low down payment. As low as 3% down payment for the home purchase and refinance transactions. Flexible sources of funds. Can be used for the down payment and closing costs with no minimum contribution required from the borrower’s own funds (1-unit). § Affordable and cancellable monthly MI. Reduced MI coverage requirement above 90% LTV; cancellable MI per Servicing Guide policy.
- Fannie Mae Standard : Fannie Mae offers 97% loan-to-value (LTV)/combined LTV (CLTV)/home equity CLTV (HCLTV) financing to help creditworthy home buyers who would otherwise qualify for a mortgage but may not have the resources for a larger down payment, as well as a 97% LTV/CLTV/HCLTV refinance option for Fannie Mae loans.
- Home Possible: LTV: Maximum LTV and TLTV of 95 percent. Property Options 1-4 units, condos and planned-unit developments; manufactured homes are eligible with certain restrictions. Down Payment can come from a variety of sources, including family, employee-assistance programs, and secondary financing.
- Home Possible Advantage 97% LTV Maximum LTV of 97 percent; TLTV 105 percent. 1-unit properties, condos, and planned unit developments; manufactured homes are not eligible. Fixed-rate mortgages with a term of up to 30 years.
- FHA: The borrower must meet standard FHA credit qualifications. The borrower is eligible for approximately 96.5% financing. The borrower is able to finance the upfront mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium.
- VA: help you purchase a home at a competitive interest rate often without requiring a down payment or private mortgage insurance. Cash Out Refinance loans allow you to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements
- USDA: USDA Rural Development’s Section 502 Direct Loan Program provides a path to homeownership for low- and very-low-income families living in rural areas, and families who truly have no other way to make affordable homeownership a reality. Providing these affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.
- WithinReach Grant Funds available, either 3% or 4.5% of the First Mortgage Loan amount. Grant funds may be used for down payment and/or closing costs. There must be no cash back to the borrower from the Grant proceeds. No funds may go to the borrower at closing other than the initial escrow deposit.