First Time Home Buyers – HomeReady 3% Low Down Payment Mortgage Loan Programs… They’re Not Just for FHA Anymore!
Did you, like many first time home buyers, think that low down payment mortgage programs were only available through HUD / FHA loan programs? Not anymore! Some conventional loan programs now offer alternatives that also feature low down payment options. Read this overview for the full scoop!
First-Time Homebuyers have a hard time juggling everyday expenses while trying to save for even a moderate down payment, let alone closing costs to buy a new home. Rent, utilities, car payments, student loans, and credit cards, not to mention groceries, can sometimes drain your bank account as quickly as money is deposited…
Considering all of that, it’s no surprise that saving for a home is one of the biggest hurdles people face compared to actually buying a home. The good news is that doesn’t have to be your experience.
Did you know that buyers have a variety of mortgage options that require down payments well below 20% of the home’s purchase price. In many cases you can buy a home with just 3% down. Oh, and guess what?! There are also buyer assistance programs that may help cover your down payment and possibly closing costs too.
But wait, there’s more… funding from those programs often can be combined with financial gifts from your family and friends to reduce your out-of-pocket costs to buy a home, WOW! Let’s dig into the details…
How Does It Work?
First-time homebuyers who can’t afford a large down payment but would otherwise qualify for a home loan may be eligible for a 3% down payment mortgage. If you’re good at managing your credit and meet certain requirements, this could be the option for you.
A mortgage lender can provide the specifics, assess your financial situation, and determine eligibility. But before you get carried away consider these initial requirements:
At least one person on the loan must be a first-time homebuyer. (In this case, “first-time home buyer” means that you have not owned any residential property in the past three years. Or, if you’re buying the home with someone else, at least one of you has not owned a home in the past three years.)
The home being financed must be a one-unit property (including townhomes, condos, co-ops, and PUDs) and not a manufactured home.
You plan to occupy the home as your primary residence; and
The mortgage must have a fixed rate (adjustable rate mortgages [ARMs] are not eligible for the 3% down payment mortgage).
The HomeReady 3% Down Program has a lot of potential home buyers confused and/or scratching their heads. Have Have No Fear!…Our team of loan officers are available to help guide you through the process whether you’re buying your first home or refinancing your 5th home.
Our mission at Pando Mortgage is to pair you with someone passionate, who will guide you through the mortgage financing process and be your advocate during one of life’s most important moments. We believe that the mortgage industry can do better; let us prove it to you!
Contact Pando Mortgage:
Pando Mortgage, LLC, NMLS #1585803