Financing in Haverhill>Question Details

Maevespain, Home Buyer in Amesbury, MA

Is it possible to obtain a mortgage with less than 20% down payment?

Asked by Maevespain, Amesbury, MA Tue Mar 6, 2012

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Trevor Curran’s answer
If you are a Veteran of the Armed Forces and you qualify for VA Guaranteed mortgage financing, then eligible Veterans are permitted to financing up to 100% of the purchase price of the home. That means no down payment.…

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%.

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
0 votes Thank Flag Link Sun Apr 29, 2012
Yes, you should be able to obtain mortgage financing with less than 20% down. I would first start with your local bank, see what programs they have to offer. Some smaller banks have differend programs - always a great place to begin...Don't be afraid to ask friends,family and coworkers where they got financing and what their experience was in dealing with these sites.
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!
Good Luck
1 vote Thank Flag Link Sat Apr 28, 2012
Yes. Ask around, remember that you are the customer and the lenders should be competing for your business. Don't take the first offer that you find.
0 votes Thank Flag Link Mon Mar 26, 2012

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.

Good luck!
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0 votes Thank Flag Link Sat Mar 10, 2012
Of course! There are numerous types of financing out there with attractive rates! It is a great time to buy!
0 votes Thank Flag Link Fri Mar 9, 2012
Absolutely! Beyond FHA, MassHousing requires low downpayments, in some cases as little as 0%. Additionally, some communities such as Malden, Boston, New Bedford, and Worcester offer incentives/help to purchase homes.
0 votes Thank Flag Link Fri Mar 9, 2012

* 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.
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0 votes Thank Flag Link Wed Mar 7, 2012
You can put less then 20% down depending upon the mortgage program/and or property.
You need to speak with a mortgage officer to see what you qualify for.
0 votes Thank Flag Link Wed Mar 7, 2012
The short answer is yes you can. As it was pointed out here FHA you can do with as little as 3.5%. There other variables to consider (credit scores...) and I would recommend you work on your budget first, find out what your credit score is and then you can shop around. Do not limit yourself to the big banks, you can look into CUs as well; feel free to email us if you have any questions:
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0 votes Thank Flag Link Tue Mar 6, 2012
"I have a contract on a $350,000 conventional mortgage and the buyer has a 5% down loan for about 4.75%."

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%.
0 votes Thank Flag Link Tue Mar 6, 2012
I have a contract on a $350,000 conventional mortgage and the buyer has a 5% down loan for about 4.75%. VA loans require no money down.
0 votes Thank Flag Link Tue Mar 6, 2012
Yes of course. FHA loans only require 3.5% down payment
0 votes Thank Flag Link Tue Mar 6, 2012
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