Both down payment and good credit are part of the THREE Building Blocks of mortgage qualification: IAC or Income, Assets, and Credit. You must have all three of these features in place to qualify for mortgage financing. The exception to down payment would be if you are a Veteran of the Armed Forces and you qualified for VA Guaranteed mortgage financing. In this program, eligible Veterans are permitted to financing up to 100% of the purchase price of the home.
For other Homebuyers---non-Veterans---a down payment would be required. 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%.
I hope that helps!
Trevor Curran NMLS #40140
You definitely need a down payment and also you need to know that you have Closing costs too. Speak to your Lender he/she will walk you through the process and your options.
This is the time to bu.... Its a Buyers Market!
Best of Luck!!
Millie from RE/MAX Voyage
Certified Buyers Representative
1930 Williamsbridge Road, 2nd Flr
Bronx, NY 10461
Great question. While there are various lending programs available, it is my recommendation that you speak with your mortgage lender to determine which option is best for you. As lending guidelines are ever changing it would be in your best interest to consult a lender who can determine your qualification for a mortgage and start the application process. Having your mortgage pre-approval letter prior to hunting for homes will allow you to shop with confidence and assist your realtor with finding homes that suit your budget.
To add to Laura's comment there is also down payment assistance programs for First Time Home Buyers but the HPD have very strict guidelines and prequalification but in essence you get a grant up to assist you with your down payment or closing costs.
Don't forget, downpayment is only half the story...make sure you have the funds for the closing costs...
As it is...the VA loan (applies only if you are or were in the military) or the NACA Loan could work because there is no downpayment and with the NACA Loan there are no closing costs other.
If you need more information feel free to contact me. Otherwise best of luck to you in your home search and purchase!
Laura Lazar Kearns
Licensed Real Estate Broker/Owner
LLK Homes Realty Inc.
Phone - 646-498-9302