Accumulating enough funds to pay for a mortgage’s down payment can be very costly. You have to worry about the prepaid costs, closing costs, and insurance even before you can get your mortgage. You also need to have an extra stash of savings for emergency purposes. That’s why it’s important that you look for other home loan options to help you with getting your mortgage.
The Federal Housing Administration or FHA assists homebuyers to either get their loans with small down payments or even changing their mortgage plan from fixed- rate mortgage to Adjustable- rate mortgage and vice versa.
However, there are still a few other options for home buyers to get a low down payment or even a 0 down payment for home mortgages.
Veterans Affairs loan or VA aims to assist military families and veterans alike to get 100% financing for their mortgage. It has been existent since World War II and is available in most countries. VA loan not only requires zero down payment, the insurance also can be applied to his existing loan, giving the homebuyer a funding fee of up to 3.3%.
The homebuyer would only need a Certificate of Eligibility from a Veterans Affairs center to prove of their military service or any one of their immediate family. Once obtained, the home buyer can then work with any lender that offers Veterans Assistance loans.
Navy Federal Credit Union offers qualified members of 100% financing for their mortgage. It is only applicable for members of the military, civilian employees of the U.S. Department of Defense and the military, and their family members. The only difference between VA and Navy Federal is that its funding fee is 1.75% less than the Veteran’s Affairs funding fees.
USDA Rural Development Housing Loans are only available in designated regions of the country that are qualified for it. Most loans are only available in rural areas, although some are actually near towns. You may check out the USDA’s website to see the maps that highlight eligible areas.
Aside from the required location eligibility, applicants also need to meet the income limitations set by the USDA. The USDA loans aim to assist those households that are considered to have a moderate to low income and those who can’t afford to have down payments and even save up for a down payment. Lenders may require a credit score from 600 to 650 or above.
These are just some of the options that you can consider if you don’t have any means to save up for your mortgage’s down payment. It would always be best to consult certified brokers in states like Texas to get the best option for your needs.<< Back to the list.
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