“I can afford monthly mortgage payments, but I just can’t afford a 20% down payment right now.”
Luckily, a high down payment doesn’t have to keep you from owning the new home you’ve always wanted. Here are a few options that can help:
1. Conventional Mortgage: Conventional loans backed by Freddie Mac or Fannie Mae save you money by allowing down payments as low as 5%. Their special homebuyer programs may help qualified buyers avoid paying for mortgage insurance, too!
2. FHA Mortgage: There are some limitations to how much you can borrow with an FHA mortgage, but it’s easy to qualify and requires as little as 3.5% down!
3. VA Mortgage: For veterans or active-duty service members, a VA mortgage is often a great way to go. The U.S. Government will guarantee your loan, giving you a chance to buy with no down payment or mortgage insurance. Certain non-military, service-affiliated borrowers also qualify.
4. USDA Mortgage: Contrary to what its name might imply, a USDA mortgage does not limit you to a very rural area. Many neighborhoods that would be considered suburbs are covered under this zero down, low-rate mortgage.
Click here for more details on these four mortgage options from MortgageLoan.com.