Comparing Low Down Payment Mortgage Programs

Young Couple With New HouseHome buyers have so many options today for selecting a mortgage today. We have several mortgage programs designed to help people buy a home who want to use less down payment. Many of these programs do not require the borrower to be a first time home buyer. Home buyers should compare all possible options before making a decision on what program is best suited for their personal financial scenario.

Here are a few key points on low down payment mortgage programs that may be worth considering for home buyers who want to use less fund for down payment.

National Home Buyer Grant Program

  • Grants are not a loan and therefore, not repaid.
  • Grants available up to 5% of the first mortgage loan amount for FHA & VA. Grants available up to 3% for conventional financing.
  • 640 minimum credit score for FHA, VA and My Community Mortgage (conventional)
  • Income limits for King County: FHA & VA: $101,430 and Conventional: $114,380.  Click here for other Washington counties.
  • You do not need to be a first time home buyer.

Home Advantage with Down Payment Assistance

  • Down payment assistance (DPA) up to 4% of the first mortgage loan amount.
  • DPA with no interest due and payments deferred for 30 years while you occupy the home.
  • Income limit of $97,000 for Washington state.
  • 620 minimum credit score.
  • Reduced private mortgage insurance with good credit scores.
  • Home buyer education required from sponsored Washington State Housing Finance Commission course.
  • You do not need to be a first time home buyer

Freddie Mac Home Possible

  • Conventional Freddie Mac program offering lower payments.
  • No price adjustments to rates (aka LLPAs) provides reduced interest rates
  • Down payment may be gifted by family
  • Income limit for King County is $98,040.
  • Home buyer education is required.
  • Great option for borrowers with some down payment available who are seeking a lower mortgage payment.
  • You do not need to be a first time home buyer – however, you cannot currently own a home.

Fannie Mae HomePath

  • Conventional Fannie Mae mortgage program for homes owned by Fannie Mae due to foreclosure.
  • No private mortgage insurance with credit scores of 660 or higher
  • Appraisals are not required
  • No income limits
  • Available for owner occupied, vacation/second homes or investment properties.

Of course, FHA, VA and USDA are great low down mortgage programs to consider as well.

Stay tuned for an upcoming post where I compare these programs with current rates and pricing.  You can easily “stay tuned” by subscribing to my blog in the upper right corner. You can unsubscribe at any time.

If you are interested in buying a home or refinancing one anywhere in Washington state, I am happy to help you! Please click here for a mortgage rate quote.

 

 

 

What May Impact Mortgage Rates this Week: April 21, 2014

mortgageporter-economyThis week’s economic calendar appears to be a little on the light side. There are no economic indicators due today. Here are the economic indicators scheduled to be released this week:

[Read more...]

House Key Washington State Bond financing to return

Washington State Bond House KeyIt’s anticipated that funds will become available for the House Key program in a couple weeks. House Key is the Washington state bond program that offers below market rates to borrowers that meet certain criteria, including income limits. Income limits vary by county and family size.

[Read more...]

What May Impact Mortgage Rates this Week: April 14, 2014

mortgageporter-economyMy apologies for the late posting… we decided to have a long weekend and so I took Monday off. Here are some of the economic indicators scheduled to be released this week which may impact the direction of mortgage interest rates:

[Read more...]

What is a Mortgage Credit Certificate or MCC?

Mortgage Credit Certificate (or also referred to as MCC) is a federal tax credit available to first time home buyers who meet certain requirements. With the tax credit, eligible home buyers can adjust their their withholding to take advantage of the savings monthly instead of waiting until they file their taxes.  The MCC remains available as long as the borrower owns and occupies the property.

[Read more...]

Home Buyer Class in Green Lake

Seattle Home Buyer ClassesDo you or someone you know want to learn more about the home buying process? If so, you might consider attending my next Home Buyer Class that I will be teaching with Jim Reppond of Coldwell Banker Danforth. This class is sponsored by the Washington State Housing Finance Commission and participants are eligible for down payment assistance, programs like Home Advantage or Home Possible and/or mortgage credit certificates (MCC).

[Read more...]

What May Impact Mortgage Rates this Week: April 7, 2014

mortgageporter-economyThis week’s calendar may seem on the lighter side with regards to economic indicators scheduled to be released. There are no economic indicator scheduled to be released this week. On Wednesday, the FOMC Minutes are scheduled to be released and this probably has the potential to influence the direction of mortgage interest rates. Remember, mortgage rates are based on bonds (mortgage backed securities) and often move in the opposite direction of stocks.

[Read more...]

WSHFC now offers reduced mortgage rates with no DPA

2013-03-07_0746The Washington State Housing Finance Commission offers several mortgage programs with various types of down payment assistance for home buyers. In order to qualify for the program, home buyers need to have household income of $97,000 or lower and attend a WSHFC sponsored home buyers class.

[Read more...]