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Low Down Payment Loans
Many buyers that I work with in today’s market do not have a lot of cash to put down on a house. The good news is that there are a lot of loan programs available that allow you to purchase a home with little or no down payment at all.
VA loans are perfect for active or retired military members. These offer 100% financing for the full loan amount up to $413,000 and a small percentage down for homes over that amount. These loans actually originate through private lenders, but they are guaranteed by the VA. The borrower is required to pay a funding fee to obtain the loan but that amount can be rolled into the loan. The good news is there is no private mortgage insurance requirements.
The funding fee for VA loans varies, depending on certain criteria such as whether the veteran in question served in the regular military or the reserves, and whether it is the veteran’s first VA loan or a subsequent one. The funding fee can be anywhere from 2.15 percent to 3.3 percent.
Navy Federal Loan
The Navy Federal Credit Union, which is the nation’s largest credit union in memberships and assets, offers 100 percent home financing to all of its qualified members for buying homes that will be used as a primary residence. The eligibility is restricted to members of the military, civilian employees of the U.S. Department of Defense, the military and their direct family members.
USDA - Department of Agriculture Loans
The Rural Development mortgage guarantee program is ideal for buyers with low to moderate income. As the name implies, the program is offered in rural or developing areas. For us that would include most of the Emerald Coast with the exception of the city of Fort Walton Beach. There are income limits based on the size of your household. This program is very popular and often runs out of funding before the end of the fiscal year. Contact a local mortgage broker for details.
FHA - Federal Housing Administration
The Federal Housing Administration offers a low down payment loans to the general public. With a minimum down payment of 3.5 percent, a homebuyer can receive a guaranteed loan. FHA insured loans comprise about 15 percent of all new mortgages originated in the country. Mortgage insurance is charged to the buyer which can be eliminated when certain conditions are met.
Florida Housing - Down Payment Assistance
Down payment assistance of up to $7,500 is offered through the Florida Housing Loan Program for qualified borrowers. The money can be used as a down payment, closing costs or to reduce the amount of the principle. The bond is actually a second mortgage on the property but the borrower does not make any payments on the money borrowed. The principle is paid off when the owner sells the property. There may be other bond programs available, ask your lender when making a loan application.
The best way to find out which mortgage solution is right for you, contact a local lender. They will be able to look at your individual needs and recommend the best program for you. For a list of preferred lenders in the area send me a quick email at [email protected] or call me at 850-685-8595. I would be glad to send you my list of mortgage professionals that offer good service and great rates.
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