Programs Are Available to Help Homeowners With Little to No Down Payment
Most people dream of buying a new home but not all are able to achieve it. One of the biggest hurdles as to why some buyers cannot purchase a home is due to lack of money for a down payment. However, I want to tell you that purchasing a home can be done with little or no money. Different lenders have different sets of criteria when it comes to lending money for a loan. There are certain types of loans, incentives, and grants available to both first-time buyers and buyers in general. What if you do not have enough money for a down payment? Check out the guide below to educate yourself about the home buying and down payment process.
The first question, borrowers need to answer; whether it is prudent to purchase a new home with little down payment?
While it’s not exactly easy in the current climate, if you can show that you have a good credit score, adequate income, and you are willing to pay a higher interest rate over the life of your home loan, your lender might qualify you for a low down payment assistance program.
- Am I eligible for Fannie Mae and Freddie Mac recently introduced mortgage programs that permit down payments as low as 3%?
2017 Guidelines For New Loan Option
The 97% loan-to-value (LTV) program is a reality; and now buyers have a real alternative to FHA. These 3% down payment loans with the following features will be considered for approval:
- The loan amount is $424,100 or below.
- The mortgage is a fixed rate loan.
- The property for which mortgage is required will be the owner’s primary residence.
- The property is a condo, one-unit single family home, PUD or co-op.
Can I Trade My Student Debt For A Home Debt? Are There Any Risks With Trading?
Persis Yu, the National Consumer Law Center lawyer says, mortgage is secured by a home, whereas, student loans are unsecured. If refinancing goes well, consumers wind up paying less. But “if borrowers face financial trouble, they may lose their homes in the worst-case scenario.”
Buying a new home can be a daunting task but even if you do not have a lot of money saved, as discussed, you may still qualify for a mortgage. If you are not sure where to start on the home buying process or would like counseling regarding purchasing a new home, please do not hesitate to contact our counselors at www.unitedcounselors.org.