Gone are the days of ‘20% down or no mortgage’. More buyers than ever are taking advantage of the low down payment types of loans lenders are now offering. In fact, according to Black Knight Financial Services, more than 1.5 million Americans have purchased a home with down payments under 10% in the last 12 months. This marks a 7 year high! Here are some of the many different options buyers can take advantage of to purchase a house today!
- Conventional 3% down – That’s right, you can receive a conventional mortgage at the best rates for as little as a 3% down payment.
- FHA 3.5% down – The FHA loan program allows you to purchase a home with as little as 3.5% down payment. This one also has less strict lending standards than the conventional product. Buyers may qualify with FICO score as low as 600!
- IFA loan – The Iowa Finance Authority has loan programs for first time as well as repeat home buyers which offer down payment and closing cost assistance, as well as a low down payment, for those who qualify.
- USDA loan – This loan product for first time home buyers offers NO down payment loans for those who qualify. For those looking to live a little outside the city, this is a great loan product. Check out their website and area map to see if you qualify!
- VA loan – For military personnel and their families this is a great way to purchase a home with NO down payment as well!
You may be thinking, “Yeah, only if I have perfect credit.” or “But what if I have to sell, I won’t have any equity?” You’d be wrong! As you can see from above there are options for those with less than perfect credit. Plus, home values have seen a phenomenal growth rate in recent years and are showing no signs of slowing down anytime soon. Continually building equity year after year. So, you better act fast before the home you want is out of your price range! If you’re looking to see how much your monthly payments would be, here’s a great mortgage calculator that you could leverage: http://www.kyramoore-ia.com/Calculators/Payment.aspx
Give us a call here at Dream Street Realty and we’ll get you in touch with some of the best lenders in the industry. They’ll fit you to your perfect loan product and together we’ll get you into your dream home sooner than you ever thought possible.