You have a greatest advantage, they should be telling you how great their programs are, what they can offer you, and why you don't need to go anywhere else.
Find a great lender, and all these qestions will be answered. If you need help finding one, shot me an email, I have a couple amazing ones I can share!
For other HomeBuyers, Non-Veterans, the program in the Bronx for qualified Homebuyers with the lowest down payment requirement currently is the FHA or Federal Housing Administration. The FHA Insures mortgages made by banks and Mortgage Bankers and allows for a down payment of only 3.5%. http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home
After FHA, Conventional financing through either FannieMae or FreddieMac allows for a minimum down payment of 5%. The Lender will need to obtain approval from a Private Mortgage Insurance company (PMI) to complete the loan approval.
The best way to have your questions about down payment and mortgage qualifications answered is to locate a local Mortgage Banker with at least 15 years experience. Mortgage professionals like myself who work for local Mortgage Bankers are Licensed as opposed to the registered status of sales people at regular banks. Thus you will receive a higher level of service which is just what a First Time HomeBuyer needs in the Bronx.
I hope that helps!
Trevor Curran NMLS #40140
Get together a list of bank lenders and mortgage brokers that have been referred from friends, your agent and business colleagues, and see what they have to offer you.
* Conventional loan programs exist that allow 3-5% down, even on a condo, not every lender can offer this.
* FHA allows for 3.5% down or $100 down if it's an eligible HUD owned property.
* VA and USDA - no down payment required
Tim, good grief, why does your borrower have such a high rate? Is that with lender-paid mortgage insurance? I can't think of another reason the rate would be that high.
What type of conventional loan is that Tim? I can't think of a situation where a person would have that rate unless it was HomePath without MI. Conventional with 5% would not have that rate because the person would be better off in FHA if their score was that bad because even the worst scores for FHA would not get you to 4.75%.