The Detroit News recently published an article about the availability of home loans with little to no down payment. Your Standard loan officer can help you explore all your options, but here are a couple of the “no down payment” options presented in the article:
- Veterans Affairs (VA loans): Private lenders originate VA loans, which the VA guarantees. There is no mortgage insurance. The veteran/borrower pays a funding fee, which can be rolled into the loan amount.
- USDA: The U.S. Department of Agriculture’s Rural Development mortgage guarantee program is so popular that it has been known to run out of money before the end of the fiscal year.
And here are a couple of the “low-down payment” options:
- FHA: With a low down payment, the FHA is the low-down option that’s available to people with imperfect credit histories.
- Mortgage insurance: Qualified borrowers can make down payments at low rates with private mortgage insurance, or PMI. For most borrowers, PMI costs less than FHA mortgage insurance but has stricter credit requirements.