You want to buy a home but have little or no money for a down payment. First, don’t give up because there are options.
No Down Payment Mortgage Option
Take a look at a no down payment United State Department of Agriculture (USDA) loan through the Department of Agriculture. The USDA’s Rural Development mortgage guarantee program is very popular.
Some borrowers are surprised to find that Rural Development loans aren’t confined to farmland. Checkout the USDA website and look at the maps that highlight eligible areas for their loans. In addition to geographical limits, the USDA program has restrictions on household income, and it is intended for first-time buyers.
The USDA levies a one percent upfront guarantee fee, and an annual guarantee fee. It can be rolled into the loan amount, so no out of pocket costs are required.
Low Down Payment Mortgage Option
The Federal Housing Administration (FHA) offers loans with a minimum down payment of 3.5 percent. The FHA is the low-down-payment option that’s available to people with imperfect credit histories. The FHA charges an upfront premium.
Learn more about no or low-down payment home loan options. Talk to one of our mortgage loan experts at Chelsea State Bank. Contact our office by phone: (734) 475-4210 or online.