A down payment can be one of the biggest obstacles to homeownership. But, it doesn’t have to be. Open Mortgage partners with our clients to identify available mortgage options with minimal or zero down payment requirements. Here are some of the ways we help borrowers achieve the dream of homeownership sooner rather than later.
USDA Home Loans – A USDA loan offers a $0 down payment loan for borrowers who meet the program’s income limits and are buying a house in qualified locations. The loan also allows for seller-assisted closing costs, meaning you could pay no more than the cost of the appraisal to close on the loan.
And remember, even though USDA loans are limited to areas deemed rural by the U.S. Department of Agriculture, you won’t be limited to living in the middle of nowhere to take advantage of one. The rural designation covers towns and cities across the country.
FHA Home Loans – Requiring as little as 3.5% down, FHA loans are an excellent option for homebuyers with limited credit histories or low credit scores. The federal government insures these loans and offers lower interest rates, but a mortgage insurance premium will need to be paid throughout the life of the loan.
Conventional Loans – Because of their flexibility, these are also our most popular loans. They could be used to purchase or refinance a home, and have fixed or adjustable interest rate options.
VA Home Loans – Members of the military, National Guard, eligible surviving spouses, veterans and reservists could qualify for loans which are partially guaranteed by the VA. Deservedly so, these loans are among the most generous in the industry. They do not require down payments or private mortgage insurance and offer competitive interest rates for both homebuyers and those looking to refinance.
In addition to these programs, Open Mortgage can review your eligibility for local civil servant programs in your area, discuss the option of using an additional loan as a down payment and explain how a one-time gift could close the gap between you and your next mortgage.
If a down payment seems too daunting, you may have more options than you realized. Call today to speak with an Open Mortgage loan expert.