How to purchase a home without 20% down!

Are you holding off buying a home because you don’t have 20% down payment saved?! Would you like to buy, but not sure if your credit score or income will limit what you can afford? Good news! There are many options available for you.

While having 20% down with a 800 credit score is very desirable, many people could qualify to buy their own homes. You just need to know your options and talk to the right lender to see what is possible for your situation! Here are the different type of loan options to consider when buying a home:

VA Loans

  • 0% down
  • No mortgage insurance
  • No upfront fees
  • Available to current or former military
  • Subject to VA inspection/underwriting

FHA Loans

  • 3.5% down
  • 1.5% Upfront mortgage insurance ( can be wrapped into loan)
  • Available to most buyers with credit scores 579+
  • Subject to FHA inspection/underwriting

USDA Home Purchase

  • 0% down
  • 1% Upfront mortgage insurance (can be wrapped into loan)
  • Available to most buyers with credit scores 640+
  • Subject to location and income requirements
  • Home Buyer class required for loan approval

Home Ready/Home Possible

  • 3% down
  • 3% Upfront mortgage insurance ( can be wrapped into loan)
  • Available to most buyers with credit scores 579+
  • Subject to  income requirements
  • All the down payment and closing costs can come from a down payment gift.

Conventional 97

  • 3% down
  • PMI required for loans with less than 20%
  • 680+ credit scores with 75% LTV
  • Not subject to  income requirements

Low Downpayment Lenders

  • 5% down
  • PMI required for loans with less than 20%
  • 680+ credit scores
  • Not subject to  income requirements
  • Submit to conforming loan limits

Determining the best financing option also depends on your current market, the terms of your offer and strength of your lender! Using a local bank, versus a large corporation or internet lender will help your contract be competitive and also ensure that you will make it to settlement.

If you are curious about downpayment options and picking the best program and lender for you, contact us at admin@wethmangroup.com!

 

 

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