Perhaps one of the most challenging things about buying a home is saving for the down payment. Many buyers think they need more than they actually do to buy a home; however, the down payment doesn’t have to be a barrier on the road to homeownership.
Fortunately, there’s many low down payment mortgage options available for homebuyers. Reasons for needing to pay a lower down payment may include having a small amount of savings, or wanting to invest the savings you have into home repairs or other projects.
Mortgage options offering lower down payment options may come with higher interest rates and mortgage insurance, which adds up over the lifespan of the loan. However, the convenience of a lower mortgage may be what’s needed to start the journey to homeownership.
FHA loans are among the most popular types of home loans, as they offer flexibility to homebuyers of diverse financial backgrounds - with a down payment of about 3.5 percent. The requirements are simple, and you don’t have to be a first-time homebuyer to qualify.
A major positive aspect of this loan type is your credit score doesn’t have to be stellar for you to qualify. Some lenders approve FHA loans with credit scores as low as 580.
One drawback to an FHA loan is that you cannot cancel the monthly mortgage insurance that comes along with it unless the home is refinanced. Traditional mortgage insurance is canceled when you have built up 20% equity in the property, but this isn’t the case with FHA loans.
Buyers who have current or former military service status can qualify for this zero down mortgage. While no downpayment is required, buyers may put down any amount they wish, coinciding with their homebuying goals.
If you need assistance with finding the right loan type fitting your needs, consider working with a mortgage loan officer to explore your options.
Nicolette is a full-time licensed real estate agent working with residential and commercial buyers, sellers, and renters. Growing up in Eastchester, graduating from Marist College and branching out to Manhattan before returning to her roots has created deep ties to Westchester while understanding what a NYC buyer wants when relocating to the suburbs.
Bringing nearly a decade of extensive experience in sales, interior design, marketing, and customer service from her Manhattan career while working with esteemed companies such as Elle Décor Magazine and various companies under the Herman Miller brand, Nicolette encompasses an effective fusion of suburban warmth and city tenacity. Her enthusiasm for helping others combined with her determination to close deals helps her simultaneously connect her with clients on a personal level while conducting business in the most professional of ways. It’s this connection that leads to a seamless and successful Real Estate transaction.
When not working, Nicolette enjoys spending time with her family, friends, and puppy. Professionally, she prides herself using those same personal values of loyalty, honesty, attentiveness, and being detail-oriented. She values all client relationships and makes it her goal to provide exceptional service and guaranteed satisfaction. Her intimate knowledge of the area, having lived in Westchester all her life, gives her enthusiasm and a desire to make her home, your home.
In July 2015, Berkshire Hathaway Home Services (BHHS) acquired Tri-Crest Realty and Prudential Centennial Realty and has been one of the most successful offices in lower Westchester County since 2000. With over 1,800 Realtors in 55 offices in the Northeast and 51,600 agents in 1,600 offices in 47 states nationally, BHHS is the #2 company in Barron’s ranking of the world’s most respected companies; ranking #3 in Fortune Magazine’s 50 Most Admired Companies survey.