Home 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.
- 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.
- 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
- 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.
- 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.