We Can’t Afford the Down Payment – What Down Payment?
Buyers continue to think that they can’t afford the down payment they need to buy a home in today’s economy. I hear all the time about tight credit slowing the housing market and while things aren’t the way they used to be (thank goodness), potential buyers with a good credit score can still find lenders happy to lend. There are still zero or low down payment loans available. For instance:
New Mexico Mortgage Finance Authority (NMMFA) offers first time home buyers with credit scores 640 or above a zero down mortgage. All a buyer needs to do is bring $500 to the closing table and have one month reserve in their account. The seller can pay all the other closing costs. Or, if their credit scores are 620-639, they must bring $1500 to closing with one month reserve in their account.
VA Loans Qualifying Veterans can get a VA loan with zero down and no monthly mortgage insurance.
USDA Loans In rural areas qualified buyers can get zero down loans with a small monthly mortgage insurance payment.
Native American 184 Program is a 2.250% down program with no monthly mortgage insurance. No monthly mortgage insurance and some tribes will provide cash grants to qualified buyers.
The key is good credit. Many mortgage officers are happy to coach buyers in getting their credit scores up and there are a host of credit repair programs out there. Most buyers need a plan which combines credit score maintenance with good old-fashioned savings. If you are currently renting and think that you want to get in on the American dream of home ownership, get started today.
