4 Mortgage Options with Low Down Payments

Too many consumers think they can't buy a home because they don't have the cash to put 20 percent down on the mortgage. The following are four mortgage options that don't require large down payments.

1. Fannie Mae's 3-Percent-Down Mortgage

This loan is a brilliant alternative to the FHA-backed loan. While borrowers are still required to purchase mortgage insurance, the premiums are usually less expensive than those of comparable FHA home loans. Borrowers can qualify with scores as low as 620, and gift funds can be used for the down payment and closing costs.

2. Freddie MacHomeOne Loan

This loan has features that include: no income limits, and no geographical limits, and it allows for the purchase of a single-family home, condo, or townhome.  Buyers are required to have at least 3 percent for a down payment, a credit score of at least 620, and are first-time buyers.

3. Freddie Mac Home Possible

This program is a deal for lower-income buyers who lack a big down payment and require "flexible sources of funds." These sources can be family members, employer assistance "secondary financing and sweat equity," or a combination of these. The buyer's qualifying income cannot exceed 80 percent of the area median income (AMI). There's a 3 percent down payment, and the borrower can qualify for 105% LTV.

4. HomePath Ready Buyer Program

This loan offers 3 percent down payment assistance for qualified borrowers who agree to participate in an online homebuying course and then purchase a HomePath property. The request for closing cost assistance must be made at the initial offer in the HomePath Online Offers system. The buyer must not have owned a home within the past three years, they must agree to reside in the home as their primary residence and take possession within 60 days of closing.

There are plenty of other programs out there that will help you purchase a home without a huge down payment. Reach out to me for more information and assistance in deciding which program is right for you.#homebuying101 #househunting #Realtors #BuyersAgent #homebuyingtips #realestate