Don’t have 20% for the down payment on a home? No problem! 20% is not the end all be all. When it comes to down payments, it’s important to know you have choices, and Mortgage Gumbo is here to provide you with options and the knowledge to choose the right option for you! So let’s break down some of the options, product by product:
The VA guarantees mortgages with no down payment required for qualified veterans, active-duty service members and certain members of the National Guard and Reserves. With a VA Loan there is no mortgage insurance. The borrower pays a funding fee, which can be rolled into the loan amount.
Worried about credit affecting your chances of receiving a loan? You should look in to FHA Loans. With a minimum down payment of just 3.5%, an FHA loan is the low down payment option for people with tainted credit histories. With an FHA loan, your credit score requirement is only 500. Furthermore, the FHA supports homeowners who have experienced recent short sales, foreclosures or bankruptcies through the Back to Work program.
Rural Development Loans:
This loan is not just a “rural loan” — it’s available to buyers in suburban neighborhoods, too. The goal is to reach low-to-moderate income homebuyers, wherever they may be. This loan is available up to 100% of the amount of the mortgage. Another key benefit of this loan is that mortgage rates are often lower than rates for comparable mortgages.
As always, we are here to bring you information and to help. Think of us as Your Total Home Authority. Feel free to call me, Dwayne Stein, anytime at 504-207-7600 or at email@example.com.