Low or No Money Down Loans

Low or no money down programs
Wouldn’t it be nice if all buyers paid in cash or had 20% down?  Many Realtors aren’t familiar with all the ways a buyer can get into a home with low or no money down. 
Classic zero down programs:

USDA loan: this is one of my favorite loan programs because it’s a true zero money down and the payment has very little monthly mortgage insurance.  It’s restricted to Rural areas, but you’d be surprised as some of the areas the program considers as Rural.  It’s also subject to income limits based on the median income of residents in that each County. 
VA loans: Most Realtors are familiar with VA loans and it’s a shame that VA offers tend to be lower on the “totem pole”.  This program also has NO mortgage insurance. 
Low Down Payment Programs:
CHF Platinum (down payment assistance): This offers the buyer up to a 5% grant (not a 2nd mortgage and not a loan that has to be repaid; a true grant).  This can be used on an FHA, VA, USDA or a MyCommunity (HomeReady®) loan.  The grant can be used for down payment and / or closing costs.  The borrower has to have a 640 min FICO and the debt ratio is capped at 45% (normal FHA debt ratio has gone as high at 57%)
Standard FHA Loan: 3.5% is the down payment for this program.  100% of the down payment (and closing costs) can come from gift.
Conventional: 5% is all that is needed.  The max debt ratio on a conventional with less than 20% down is 45% (whereas FHA is much higher).

HomePath®:  This is Fannie Mae’s program where buyers can purchase REO properties directly from Fannie Mae with only 5% down.  No appraisal is needed and there is no mortgage insurance.
City DPAs: These are down payment assistance programs sponsored by specific cities.  There is a long list of cities that participate and offer buyers similar forms of down payment assistance like that of the CHF Platinum or they can be “silent seconds” where a lien is on title and the borrower doesn’t have to pay until they sell or refinance the home.
To see if you qualify for any low or no money down programs, CLICK HERE for a free evaluation.
Justin Lees

NMLS 110154
Branch Manager
Supreme Lending

The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Supreme Lending, and do not necessarily represent the views and opinions of Supreme Lending. In no way do I commit Supreme Lending to any position on any matter or issue without the express prior written consent of Supreme Lending’s Human Resources Department.

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