With all of the changes to the mortgage market lately a question I get asked quite a bit is about no or low down payment options. Many of the programs of the past have gone away but there are still options available. Here's a few to keep in mind:
VA Loans: Are you a veteran. Don't forget the original 100% financing option of a VA guaranteed loan. This is a great option because you get a zero down loan combined with no monthly mortgage insurance.
USDA Rural Housing: This loan doesn't work for everybody but if you meet the qualifications it's a great option. The rural housing loan is only available outside of the metro area. However, some people don't know that it is available in places like Sherwood, Wilsonville, and Sandy. Like the VA loan, this program allows for 100% financing and the fee is added to the top of the loan amount. Again, this means no monthly mortgage insurance. There are some income guidelines to watch out for so if you're interested, give me a call and we can go through them.
FHA: Most people are familiar with the FHA loan program. This isn't a zero down program but it's pretty close. FHA requires 3.5% of the purchase price as a down payment. What some people don't know is that the down payment can come from a gift or even a loan from a family member (as long as you can still qualify with the loan payment). So if mom or dad is willing to help this might be an option for you. This is also a great loan if you can get a family member to co-sign for you.
All of these options allow the seller to pay up to 6% of the value toward your closing costs (FHA may change that to 3% in the near future but so far they haven't given a date). So, you could get in a home with little to no money out of your pocket!
These options are are also the most lenient on credit scores right now. As long as your score is 620 or above you're good to go.
Rates at Lows of the Year!
If you've been waiting for rates to decline this might be the time for you to jump into the market. 30 Year rates are averaging in the high 4% range at their lowest levels of the year. If you've been thinking about buying or refinancing your home, it's not going to get much better than this!
Have a great day!
Derrick
503-475-0612
