First Time Homebuyers only need 3% down payment
Updated: Mar 23
Any First Time Homebuyer only needs 3% of the sales price as down payment
You can also add your parents as co-borrower to qualify if your income is not enough
Here are mortgage loan programs available with brief descriptions:
FHA — The Federal Housing Administration, created during the Great Depression in 1934, insures mortgages and construction standards. It is a wonderful program for First Time Homebuyers with credit score between 580 to 660. Minimum down payment is 3.5%. Down payment can be gifted from direct relatives. There are down payment assistance available for mid to lower income household. Give us a call and we'll go get you the information you'll need.
USDA — The U.S. Department of Agriculture Development agency has programs for homebuyers in rural areas. This is a $0 down payment programs and great for First Time Homebuyers wants to purchase outside of city limits. This loan isn't available if you qualify for a conventional loan. There are income eligibility requirement, so give us a call and we'll review it for you.
VA — The U.S. Department of Veterans Affairs provides mortgage loans to members of the military, veterans and their spouses. It is just the place for veterans who struggle getting a down payment because of little monthly income and savings. You can get as much as 100% of the price covered by your loan. All veterans should really take advantage of this program which offers low interest rate and no down payment. Definitely for First Time Homebuyers who served our country. There are funding fee with any veteran that has less than 10% disability claim.
Conventional — Available with just 3% down for First Time Homebuyers. Conventional loan typically easier to qualify with 720 credit score but the minimum score is 640. Private mortgage insurance required for borrowers whose down payment is less than 20%.
We've been advising loan structures and programs for last 20 years. If you're not so sure about First Time Homebuyers programs, give us a call and we will go through all your available options!