It's true that the free-money days of the housing boom, when essentially anyone could get a mortgage with little or no monay down, are long gone. However, there are still ways that qualified borrowers can get a mortgage with a small down payment--and qualifying may not be as difficult as you think! If you know where to look, it is still quite possible to get a mortgage with no money down--something many lenders will tell you is virtually impossible these days.
The FHA is the first place most new homebuyers should look when contemplating a low down payment mortgage. The FHA requires a down payment of as little as 3.5 % with attractive mortgage rates and credit requirements that are fairly generous as well.
For veterans and others who qualify, a VA mortgage is hands-down the best deal around when it comes to home loans. It's not only one of the few places where you can still get a mortgage with no money down, there's also no requirment for mortgage insurance either, since that cost is picked up by the US government. The interest rate also tend to run lower than on conventional mortgages, because the government is taking on part of the risk.
Navy Federal Credit Union:
Unlike other options on this list, the NFCU is an actual lender, a credit union like many others, that orginates mortgages itself. It's also one of the few lenders that still offers no down payment mortgages on its own inititative.
The membership guidelines for NFCU are smiilar to the elegibility guidelines for a VA loan, except with some key additions. In addition to being an active duty or retired member of the armed forces, you can also join the NFCU if you're a civilian employee or contractor working for the Department of Defense or at a DOD installation, including government employees, or if you're an enlistee or officer candidate. You an also qualify if you're a family or household member of any of the above.
This is a fairly obscure mortgage product--many people aren't even aware they exist. But if you don't have a military connection, it may be your best bet for a no down payment mortgage. These loans are offered through the US Department of Agriculture's Office of Rural Development. Technically, these can only be used to buy a home in a rural area, but the definition of 'rural' for these is pretty generous and includes many communities that most people would consider suburbs.
***So despite what you think. there may be a way for you to finally own that home you've been dreaming of!
Contact The Horonzy Group 222.4147 for further assitance or more questions about your possibilities!