That’s OK, there are many home loan programs that allow you to purchase a property with less than a 20% down payment. You may be familiar with the Federal Housing Administration (FHA) or Veterans Affairs (VA) loan programs that require little to no money down for a purchase. However, there are several stipulations as the VA only lends to current or past Veterans and service members, while FHA loans generally require a minimum 3.5% down payment.
Homeownership remains a goal for countless Americans who wish to enjoy the many benefits that come along with it. Owning a home provides you with a sense of security that cannot be found elsewhere and is often a sign of personal and financial success.
Buying a home is a sound financial investment and will allow you to enjoy some major tax benefits that will save you money at the end of the year. The interest and real estate taxes you pay annually are major expenses that can be deducted at the end of the year. Stop throwing your money away renting and start building some equity in your new home today!
Low Down Payment (o.5%) Program for Arizona, California and Nevada Buyers
There’s a new program that allows prospective homeowners to qualify with as little as 0.5% down payment. If you have been shopping for a mortgage and haven’t been able to save the required 3.5% down payment for an FHA loan, this new mortgage program (which is actually an FHA loan) will lend you 3% of the purchase price. This means that the lender will allow a 1st mortgage up to 96.5% of the purchase price, and the “piggy back” 2nd mortgage will be 3% of the purchase – with the remaining 0.5% provided as a down payment.