One thing that a lot of first-time homebuyers don’t realize is that they don’t have to put down 20% on their home. While a conventional loan requires it, you can get a lot of different kinds of mortgage that require a smaller down payment and let you buy your home with less money down. Let us help you with a low down payment mortgage so that you can move into your dream home now instead of later!
The first type of low down payment home that we want to discuss is the FHA Loan. FHA Loans are backed by the Federal Housing Administration, and only require a 3.5% down payment to secure the financing.
FHA Loans often come with lower credit score requirements and lower interest rates, making them very attractive for people stuck renting or living at home, trying to save up the 20% that a traditional home loan would require.
FHA Loans do require PMI, or Private Mortgage Insurance. This is an insurance policy that you pay monthly and does not go towards the balance of your loan, but helps guarantee the risk for the lender, making the loan possible at the lower down payment rate.
Another type of low down payment mortgage is a VA Loan. VA Loans, or Veterans Administration loans, are loans where military veterans and their families can receive up to 100% funding on their home, and move in with no money down.
While the VA doesn’t do loans themselves, they guarantee them for lenders, like us. We are a fully-approved direct VA Lender, and will get veterans closed on their mortgages. You can also roll in appraisal, credit report, title insurance, lender origination fee, recording fees, and survey fees to your loan.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?