Putting together the money for a 20 percent down payment can be tough. With rent costs rising sharply across the country, your landlord is reaching further and further into the pockets of renters, pushing the dream of homeownership down the road, or off the table entirely. Luckily, there are lower down payment mortgages available to help renters become homeowners.
FHA is the most popular of the low-down-payment mortgages. The FHA or Federal Housing Administration loan just requires a 3.5% down payment to buy a home, with a lower credit score barrier to climb as well. These loans are federally insured, giving lenders insurance against borrowers that can’t meet their obligations and default on their mortgage payments.
FHA loans also come with a downside, as you will have to pay PMI, or Private Mortgage Insurance on the loan. Since you are putting less equity into the home, this gives the lender more assurances that they will not take a loss on your loan, making them more likely to lend the money.
The Home Loan Expert team is able to use the FHA Streamline process to refinance FHA loans as well, giving FHA borrowers a quick way to take advantage of lowering interest rates or changing market conditions.
If you are a military member, current or past, or their immediate family, you should qualify for a VA or Veterans Affairs loan. These loans come with no down payment requirement, and let you buy a home with no money down.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, 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?