Low down payment programs are popular with Todays' Buyers.
Since the housing crisis in 2008, lenders have added low down payment mortgage programs to expand mortgage credit to more people.
Borrowers can put as little as 3 percent down on conventional loans are backed by Freddie Mac or Fannie Mae. A couple of Banks have their own low down payment programs, too, and others are following their example. Some government-insured loans require no money down while FHA loans require only 3.5 percent down.
Despite the availability of these options, nearly a third of people planning to buy a home in the next three years still think they need to put down more than 20 percent on a home, according to surveys. Another 30 percent of renters and nearly a quarter of existing renters and existing homeowners say they don’t know how much money down lenders require.
With borrowers stretched on affordability, lenders have to balance access to credit and ensuring the loans they are doing are not high risk. That’s why it’s important to evaluate a borrower’s whole financial picture and not rely on formal underwriting models. Your credit score, debt-to-income ratio, down payment and payment history are all important for lenders to look at when determining your ability to repay a mortgage.
For more info on types of loans available, Call me today. I can get you with a good lender to get you started in the process. Usually the Pre Qualification process takes only a few minutes over the phone. What have you got to lose other than paying payments for your landlord?
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