One of the biggest challenges for a 1st time home buyer is coming up with a down payment. Here are some popular loan programs that require 0 down, 3% down, or 3.5% down.
- CalHFA- This loan allows for 0 money down when you combine the CalFHA 1st and 2nd mortgage. The first is an FHA loan with 3.5% down, and the 2nd covers the 3.5% down payment at a low rate with deferred interest. This program has income and loan limits we can go over with you but is a great option for purchasing with no money down.
- USDA loans- 0% down loans with very inexpensive mortgage insurance (less than half the cost for FHA). The only issue is that the property needs to be in a rural area and there are income limits as well.
- VA loans- 0% down and no mortgage insurance (mortgage insurance is an extra charge on most loans with less than 20% down). This makes VA loans extremely attractive for military service members, veterans or active duty. You can check eligibility on our VA site www.VeteransLoansUSA.com
- HomeReady- This is Fannie Mae’s affordable loan product. It only requires 3% down and has discounted mortgage insurance. One unique feature is that you can use “boarder income” (rent paid to you from a roommate), added to your income to qualify. You must be a first-time home buyer and there are income limits in some areas. Contact us for more details.
- FHA- This is a popular option for many first-time buyers. It only requires 3.5% down and does not require a great credit score. The down payment can be all gift funds and there are no income limits. You can find out more information and apply for an FHA loan on our site https://www.grandlendingca.com/fha-loans/
If you’d like to check eligibility for any of these loans, have questions, or want more details please visit us www.GrandLendingCA.com or call 800-293-2133. Thank you for reading!
Article written by Brian VerBurg