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4 Low and No Down Payment Mortgage Options


paperfree Aditi Bansal 29:14
Published on Thursday, May 04, 2017

In case you have a dream to one time own your home, and you have the right income and credit score that can allow you to qualify and get a mortgage, but you think that owning a home isn’t within your reach because you don’t have enough down payment to get a loan approval; then you should read this article

tags  #Moderate Income Borrowers  #Hard money Jumbo Loans #Low Down Payment

 

In case you have a dream to one time own your home, and you have the right income and credit score that can allow you to qualify and get a mortgage, but you think that owning a home isn’t within your reach because you don’t have enough down payment to get a loan approval; then you should read this article! There are many types of mortgages on the market, and some have low or even no down payment requirements.

Top 4 Low and No Cash Down Payment Mortgages

Home Ready Loans By Fannie Mae

The Fannie Mae home ready loan is a mortgage type that requires a low down payment for low to moderate income generating borrowers that are creditworthy. The required cash down payment is as low as 3 percent, and both repeat and first-time property buyers can qualify for this type of mortgage. Fannie Mae home ready loans are meant to address the today’s property buyers, and the main innovative feature that enables borrowers to qualify for a loan is their lifestyle.

Borrower Requirements

As earlier mentioned, this type of mortgage isn’t limited to only first time property buyers. The primary focus of Fannie Mae’s Home Ready is to include the low to moderate income borrowers regardless of their history in property ownership. The requirements for this type of loan are a 30-year loan repayment term and a fixed rate mortgage.

VA Loans

VA loans are made available to all members in active service duty, veterans, and the spouse of a veteran (including other individuals that are directly affiliated with members of the armed services). This type of mortgage is very rare, and those who qualify in most cases pay a 0% down payment.

FHA Loans

Buying property when you don’t have enough savings or a low credit score can seem like an impossible venture, but it’s not. It doesn’t matter whether you’re a repeat property buyer or a first-time homebuyer, or if you want to refinance, a Federal Housing Administration Loan (FHA) is worth exploring. An FHA loan is a type of mortgage that the Federal Housing Administration covers. This type of mortgage loan has become popular because of the small down payment, closing costs, and comfortable lending requirements that enable property buyers who don’t qualify for the more conventional mortgages.

The FHA mortgage down payment can be as little as 3.5 percent, and this has made it possible for low and middle-income earners to purchase properties even when they don’t qualify for conventional mortgages that have stringent requirements, bigger down payments, and a higher credit score.

Hard Money Jumbo Loans Conventional Lenders

There are several myths about hard money jumbo loans, and although most of the hard money jumbo loans conventional lenders demand for a 20 percent down payment in order for them to avoid the compulsory private mortgage insurance, also commonly known as PMI on the loan, some hard money loans conventional lenders can waive the PMI to most credit-worthy borrowers who have put a cash down payment of 10 to 15 percent. Nonetheless, 10 percent is still a high amount, especially for low to average income earners. However, this can be a much easier amount to save when compared to saving for the full 20 percent down payment that some hard money jumbo loans conventional lenders ask.



This page with a focus on Moderate Income Borrowers, Hard money Jumbo Loans was shared by Aditi Bansal.

 
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