Need A Smaller Down Payment?

Need a Smaller Down Payment?

By Michael Ruiz
Senior Mortgage Banker
Hancock Mortgage Partners


While down payment requirements have increased for some programs, it is still possible to buy a home with less than 5% down…or even NO money down.

For example, FHA offers a loan program that requires as little as 3.5% down. In addition, the VA and USDA offer loans that require no down payment. Of course, there are restrictions with each of these programs that can include maximum loan amounts based on your location with FHA loans, income and property requirements for those offered by the USDA, and your qualifying status as an eligible Veteran.

In addition to those programs, keep in mind that many sellers in today’s market are willing to offer concessions, such as paying part or all of your closing costs. That can decrease the amount of funds you may be required to have to purchase your next home.

The point is that it’s still possible for millions of Americans to purchase a home with less than 5% down.

Mortgage Interest Rates for Fixed Rate Mortgages*
Rates as of Monday, 20th December, 2010:
  Term Conforming APR Payment per
Jumbo APR Payment per
30 Year Fixed 360 4.75% 4.791% $5.22 % 0.000% $0.00
15 Year Fixed 180 4.25% 4.321% $7.52 % 0.000% $0.00
FHA 30 Yr. Fixed 360 4.625% 4.666% $5.14 % 0.000% $0.00
FHA 15 Yr. Fixed 180 4% 4.040% $7.40 % 0.000% $0.00
5/1 ARM JUMBO 360 % 0.000% $0.00 5.375% 5.432% $5.60

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Filed under FHA Lending, Houston Real Estate Outlook, Lending

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