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 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.
I hope that helps!
Trevor Curran NMLS #40140
If you are qualified there are government and other types of grants you can try to get, but it is a lot of work and hard to qualify. It would be worth the effort if you do qualify. Your best bet would be to research that on Google. If you are a veteran, you can also purchase a home with no money down.
Aside from that you will probably need to come up with at least 3% down. You can get that money from family members as a gift if need be (or if possible).If you have further questions fell free to contact me, I would be more than happy to help. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Please give a call to Dominick Sutera of Academy Mortgage... 516-249-4800 x 223 or his cell at 516-655-2900. Not only will Dominick explain it all to you, he will assist you in any way possible.