Low or No Down Payment? You have Options!
Finally…a great resource for you to find loans and/or grants to help you buy a home with as little money as possible. What we’re going to do here is give you a very brief overview of many/most (I doubt all) loan programs that allow minimal or no down payment. Included in the descriptions will be links for you to do further research on any that pique your interest. Let’s get started:
1) VA HOME LOAN – This is a tremendous benefit for veterans. The VA really got it right with this loan. The down payment is 0% and veterans can have various credit issues and still qualify.
2) DREAM MAKERS – A 2 to 1 match grant program for low to moderateincome Veterans
3) USDA LOAN – This is a winner from the US Department of Agriculture. Formerly referred to as a Farmer Loan, this loan is designed for homes in rural areas. (municipalities with 25,000 or fewer based on the most recent census) You’re not going to find eligible properties in town but on the outskirts of the Phoenix Metropolitan Area you’ll be able to use this loan.
4) GOOD NEIGHBOR NEXT DOOR – This is hands down the best loan available to anyone anywhere…period. Teachers, firefighters, police officers and EMTs are offered 50% off eligible HUD owned homes and only need $100 down payment. Years ago when foreclosures were abundant, the number of eligible homes were more prevalent. Today it is very hard to come across an eligible home.
5) HOME IN FIVE PROGRAM – Probably the best funded down payment assistance program in Maricopa County. This program provides assistance in the amount of (net) 3% of the sales price of the home you purchase. Veterans, teachers and other first responders get an extra 1% to use towards down payment and/or closing costs. With an experienced Realtor Team and Lender, you can get into a home anywhere from $0 to $1500.
6) HOME PLUS – Much like Home in Five but with assistance varying from 2% to 5% depending on loan type.
7) CHENOA FUND – This is very similar to Home in Five but a bit more lenient with credit and income limitations.
8) FANNIE MAE HOMEREADY – This is designed for credit worthy, low to moderate income borrowers. Minimum down payments are just 3% and offer lower mortgage insurance rates for those that qualify.
If you really want to dive into all the details, go here:https://www.fanniemae.com/singlefamily/homeready
9) FREDDIE MAC HOME POSSIBLE – Very similar to Fannie Mae HomeReady. Min 3% down with lower mortgage insurance premiums.
10) FHA LOAN – this is one of the most popular loans available. The minimum down payment is 3.5% of sales price. Originally designed for low to moderate borrowers, FHA is being used by people of all income levels due to the low down payment.
Lastly, there are a myriad government grants available through various municipalities. Those funds are sent from the federal government and distributed through cities, counties and the state. These funds are available until used up. There is no way to know how long they last. If you are interested in finding out if money is available in any specific cities or towns, please contact us and we can find out for you.
Again, we are an experienced team here to help you with all your home needs.