Down Payment information
Down payment amount varies depending on the type of financing will be used to purchase the home. It generally is between 3% and 20%
Depending on how your lender is structuring your loan, you may be able to have your down payment come from other sources.
Ø Down Payment Assistance Programs offered by the City
Ø Borrow From 401K or IRA accounts
Ø Gift From Parent
Ø Gifted through a third party ex. The Seller, Builder, or Seller
Options for a $0 Down Financing
80/20 loans- offers the buyer 100% financing by having two loans to cover the cost of the home. 80% of the loan is usually at a lower interest rate, and 20% of the loan is a slightly higher rate. Both loans combined hence the 80/20 nickname.
VA Loans- are loans that are guaranteed by Veteran Affairs. Prior Military usually qualify for this loan. They offer very competitive rates, very low closing costs, as well as no down payment. VA does not actually give you a loan they supply you with the certificate showing eligibility required in order to complete the loan.
FHA loans- offer various different programs to low to moderate income families, as well as public servants, ex teachers, fireman, and police officers. They also assist first time buyers and many others, by providing mortgage insurance premium to investors and lenders.