FHA loans require only a 3.5% down payment and it's one of the only programs that doesn't crush you on the rate for having a low credit score. Feel free to call me if you would like to get pre-approved.
Tony Grech | Mortgage Loan Originator | NMLS #977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 ext. 278
Mobile (313) 622-7383
Fax (248) 945-4842
Also note that you're competing against investors at that price range, and you'll have to be pretty aggressive in order to get your offer accepted.
The smartest thing you can do is meet with a good, local, mortgage banker, not a big bank but a smaller firm that specializes in writing mortgages, and see what programs are available to YOU.
Besides down payment you will also have closing cost. Your best route is to consult with at least 3 lenders and see what options they give you. Don't go making any big purchases (car, furniture), or opening new credit accounts for at least 90 days prior to applying for a loan. Make sure you have no late payments during the whole process. Don't go paying old debt in order to improve your scores, without the advise of your lender....there may be better ways to improve the numbers. Was this answer helpful? If so please click on "best answer" or on the "green thumbs up".
FHA loans are not FICO score driven. The lenders really set the FICO score limits used. We have FHA lenders that will consider loans in the 500's.
With that being said you could put down as little as 3.5%.
Let me also add that depending on where you are getting your credit score number, that number you have could be quite different when a lender pulls credit. Lenders use a MCR -Mortgage Credit Report which has different scoring models than some of the credit score provider companies out there.
I would need more specifics to get you a more direct answer becasue you may qualify for other loan types with similarly low down payments.
I would love to help.