The other option would be a FHA loan program which will require 3.5% down, but seller can pay closing costs.
Hope this helps!
Gerda Gaetjen, ABR
The real answer is in what you qualify for. Many of the "special" programs have income limitations. So when speaking to a mortgage professional you will need to provide those answers. Some mortgage professionals will "sell" you on what they have...and some will tell you what's available outside of their offerings..Most Mortgage companies have "good money" meaning good rates in specific products..say a 5/1 arm may be best at Bank of America and a 30 year fixed jumbo may be best at Suntrust...etc.
A good well connected Realtor will qualify you based on your needs and desires...income..how long you will live in/own the property, payment etc. and will set you with the appropriate lender who has the best product for you. There are grants available and special programs if you join certain credit unions as well.
Best to be armed with info. because this is a decision that sticks for few years minimum! Have a great day and best of luck!!!
Erik J. Weisskopf, ABR,CDPE,CRS,GRI
Currently FHA is fequiring 3.5% of tthe selling price as a down payment. I deal with one bank that goes to 3% with good credit score. The only way to go with less fo a down payment is through one of the two governemnt programs.
One is USDA. Here you get 100% financing. however; the home has to be in a rural area and is designated as rural by the USDA to qualify.
The other is if you or your husband are veterans. You cna purchase a home through the VA with no money down.
Last, you mention you have enough saved for closing costs. You could use that for the down payemtn and ask the seller to contribute toward the closing costs X amount of money. The banks are allowing 3% of the sale price to be paid by the seller in closing costs.
Looks like you are right in my backyard. My office is right near the Pohick Library in Burke. I would be happy to set up a meeting with you and a loan officer to review your options in more detail. My associates are right about the FHA and VHDA options. One thing I cannot tell though is if you or your spouse qualify for a VA loan. For this you or he will have to have served in the military. If you qualify for a VA loan you do not need to put anything down. In fact you might even be able to get the Seller to may or your closing costs. I settled one yesterday and the buyer got most of his deposit back at settlement.
One issue with FHA is that there has been talk in the industry of increasing the down payment required. Since you are not planning to buy until next year it is impossible to tell you what FHA will require for a downpayment at that time.
Let me know if I can be of any further assistance.
From one VA mom to another -- greetings! I've sold many homes this year and last through the FHA program, which requires only 3.5% of the sales price. I also have done a few through the VHDA program, which requires zero dollars down. In fact, my last buyer who went through this program even got her earnest money deposit back in full. Please let me know if your have further questions. I may be reached at 703.919.7761 any time.
The blog below may give you some good ideas on how to build up a down payment. It just takes commitment and dedication to suffer and do without now to have a down payment later.