No cash to put down? No problem!

Low on Down Payment Cash? FHA Not Only Option

Justin McHood | Zillow Blog | August 22, 2012 | link

With interest rates at historical lows and home prices being more affordable than they have been in decades, many people know that now is a great time to buy a home, but they may be worried about large down payment requirements.

When looking to finance a home, two of the most common questions asked include:

  • What loan options require a low (or no) down payment?
  • Is down payment assistance available?

Traditional loan options

While it is true that a 20 percent down payment is still required to avoid mortgage insurance for conventional loans, there certainly are mortgage options that require a low or no down payment. Almost all mortgage lenders offer at least these options:

  • VA mortgages requiring zero down.
  • USDA mortgages requiring zero down.
  • FHA mortgages requiring 3.5 percent down.
  • Conventional mortgages requiring 5 percent down.

Down payment assistance

In many parts of the country, down payment assistance programs are available. These programs usually work in conjunction with a local government in the form of a bond, government grant or community development program.

The U.S. Department of Housing and Urban Development maintains a database of state and local home buying assistance programs on its website.

Read more…

Author: kimhuntkw

We specialize in Real Estate in the Pleasanton, Dublin and Livermore areas of the East Bay in California

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