It’s time to buy your first home! Hooray! This is a big deal and a major milestone in your life. It’s definitely not something to do on a whim. As a first-time n=home buyer, there are a gazillion things you should know before you take the plunge. We want to make sure you have all the information you need to make a smart decision, not only on which home is the best choice for you, but also on which financing option will best fit your unique situation.
I’ve said it before and I’ll say it again: Now is the perfect time to buy a home. With low home prices and even lower mortgage rates, you’re probably itching to take advantage of today’s market by becoming a homeowner – and that’s a pretty smart thing to do.
But let’s be realistic. Perhaps you want to buy a home, but you haven’t been able to save up for a huge down payment. Maybe it’s because you weren’t considering buying a home until recently. Maybe it’s because it’s really hard to save up a lot of money while you’re paying rent, saving for retirement and paying four dollars a gallon for gas. Either way, NOW is the perfect time to invest in real estate, and whether or not you’ve saved up 20%, you CAN own a home.
If you’re in the low or no down payment boat, you have a few options. Let’s take a look at your loan choices if you’re planning on buying a home with less than 5% down.
What it is: FHA loans are insured by the Federal Housing Administration (FHA), meaning that lenders aren’t taking on a risk by lending you the money. Therefore, FHA loans come with less stringent credit requirements and smaller down payments than conventional loans. If you decide that an FHA loan is right for you, you’ll be glad to know that you can get it with either a fixed or an adjustable rate.
The down payment: As little as 3.5%.
What it is: Are you a veteran? An active member of the military? Are you the surviving spouse of a military veteran? If you fall into any of those categories, you can take advantage of VA loans, home loans that are insured by the U.S. Department of Veterans Affairs. If you’re eligible to take advantage of this great military benefit, you’ll be able to refinance up to 100% of your primary home’s value – and that’s a deal!
The down payment: No down payment required!
What it is: A program offered through Fannie Mae, HomePath mortgages are designed to help sell Fannie Mae homes. With a HomePath mortgage, you can snag a great deal on a home below market price. There’s also no need for a lender-requested appraisal with a HomePath loan, so you can get approved fast. HomePath.com can help you find the deal of your dreams.
The down payment: As little as 3% down.
Whether you’ve been saving for years, or you’re just thinking about becoming a homeowner, you can buy a home with a small down payment. Call your mortgage expert to take advantage of one of these low down payment loans today.