Low or No Down Payment Mortgages
There are several options for a Low Down Payment or No Down Payment Mortgage in Gainesville, here at Landmark Mortgage Planners. We are a local lender and we are experts on Low Down Payment Mortgages. All of our mortgage planners as well as our processing staff are very knowledgeable and experienced in all of these options.
No Down Payment Mortgages
USDA Mortgage Loans. Also called the Rural Development Loan or Section 502 Loan, this mortgage allows for $0 down payment. Since the seller is allowed to pay closing costs this means borrowers are often able to purchase a home with a USDA loan with less out-of-pocket expense than renting. Meant primarily for lower income families, there are some restrictions on income as well as the location and type of home that can be purchased. You can learn more about USDA No Down Payment Mortgages, the restrictions, advantages and rates – click here.
VA Loans. The VA loan is a no down payment mortgage option for Veterans of the US Armed Forces. You have to be honorably discharged from service, or currently on active duty to qualify. Also, you cannot have already used your VA benefit to purchase another home that you still owe on a VA mortgage. If you are a veteran and have not used your eligibility, a VA loan is absolutely the best option for a no down payment mortgage. There is no restriction on where the home is located like with USDA, the underwriting is fairly lenient, and the rates are very good. You can learn more about VA loans, the requirements, advantages and rates – click here.
Low Down Payment Mortgages
FHA Loans. FHA is one of the most popular resources for low down payment mortgages. This is because they are quite lenient, no restriction on home location, and anyone can qualify with proper credit and income. There are no income maximums or location limitations as with USDA. Many people think FHA is a first time home buyer program, but that is incorrect. The home being purchased must be for your primary residence – no second homes or investment properties are allowed, but you can currently or previously have owned a home. There is a limit on the maximum amount that you can finance in each county. To learn all about the FHA loan, its requirements and limitations, click here.
HomeReady & HomePossible Loans. These are conventional loans that allow for as low as 3% down. There are income restrictions by location, and buyers must qualify with good credit and moderate debt ratios. But these loans can provide a nice interest rate for buyers with good credit.
Low Down Payment Mortgages that Include Financing for Renovation
FHA 203K Loan. There are many foreclosed properties on the Gainesville market today that are in less than move in condition. The FHA 203K loan is a low down payment mortgage that allows up to $35,000 in renovation costs to be rolled into the loan. Requirements are similar to the FHA low down payment mortgage, and there are restrictions on the types of improvements that can be made. To learn more about the FHA 203K program , the requirements and rates – click here.
We hope this help you discover a low down payment mortgage program that is right for you. It is always best to meet with a Landmark Mortgage Planner to discuss your options since each applicant’s personal situation is different and each program has intricacies that may cause it to be less desirable in your circumstance. You can start this process by applying for a pre-approval online or scheduling an appointment with one of our planners below.