If you are a Veteran of the Armed Forces and you qualify for VA Guaranteed mortgage financing, then eligible Veterans are permitted to finance 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%.
After FHA, Conventional financing through either FannieMae or FreddieMac allows for a minimum down payment of 5%. Your Lender would have to obtain approval from a Private Mortgage Insurance (PMI) company to complete the loan approval.
The best way to have these questions 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
The investor ratio can even be over 50%.
80-15-5 loan structure. Other lenders may tell you that you need to put down 10 or 20% or do an FHA and pay mortgage insurance. It's no fault of their own, their limiting factor is they don't have 2nd trust money.
2nd trusts are great for a number of reasons, for example; the interist is fully tax deductable and there is no pre payment penalty so you can pay it off as fast as you want.
Graham C. Pruitt | Loan Officer Extraordinaire | NMLS # 521186 | Acacia Federal Savings Bank
Capitol Hill Residential Mortgage Office: 659 C Street, SE, Washington, DC 20003 | p: 202.543.6830 | c: 703.501.1777 | f: 202.543.6833 | email@example.com
It depends. Is the building FHA approved and are you using an FHA mortgage? If that is the case, than 3.5% if this is your primary residence. For conventional it depends, many lenders I have seen are asking for at least 10% down. If you put at least 20% down you can avoid PMI.
Please let me know if you need any assistance.
I am in the DC metro area so if you wold like to talk about what programs are available to you I would be more than happy to help.
The pre-approval process is key so take a minute to read this: http://www.trulia.com/blog/elliott_r_oliva/2011/12/pre-apppr
For questions or details please contact me at your convenience.
Elliott R. Oliva
Primary Residential Mortgage
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