There are several options out there to help you buy a home, even if you don't have thousands for a down payment. The following loan programs may differ based on location and availability. Contact me to speak with a lender in your area.
1. Conventional loan using Movement Mortgage's MAP program
This is an incredible program!!
If you qualify, M.A.P. may be able to help you with
- Up to 3% of the sales price as a grant that does not need to be repaid
- Allowance for seller or other interested party contributions of up to 4% toward closing costs
Check out their website here and ask me for a connection with a Movement loan office near you!
2.. USDA loan: Typically only available in more rural areas, this loan allows 100% financing. A few key points:
- Loan value must not exceed appraised tax value
- Only low to moderate income buyers are eligible
- Must meet credit requirements
- Fixed 30 year interest rates apply
- "Qualifying ratios are 29% for housing costs and 41% for total debt." -USDA.gov This means your housing expenses cannot be more than 29% of your income, and total debt (think student loans) may not exceed 41% of your income.
3. FHA loan: This is a mortgage "insured by the Federal Housing Administration" -Bankrate.com That means they protect the bank if you cannot follow through with the loan.
- 3.5% down payment
- Minimum credit scores apply
- The FHA allows sellers to pay for the buyer's closing costs, this means:
- Some lenders will pay for your closing costs, but it may come as an increase to your interest rate
- Some builders offer to pay your closing costs as an incentive to buy with them
- "Because the FHA is not a lender, but rather an insurance fund, borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA)"-Bankrate.com
4. VA loan: Available for Veterans and their families
- No down payment
- No mortgage insurance
- For primary residences only
Buying or selling a home? I work in the greater Charlotte, NC area and would love to work with you! Not in the area? Let me connect you with a great Realtor near you!