If you are on a tight budget, you may be wondering about ways to buy a house with a minimum down payment. Well as your local Tustin mortgage lender, Matthew Campbell with American Financial Network, Inc., has listed below three common mortgages that have a low or zero down payment.
1. Federal Housing Administration (FHA) Loan
This loan is a government-backed loan that is administered by the Federal Housing Administration. A government-backed loan means that the government will protect the lender from any financial losses, such as the borrower defaulting on their Tustin mortgage payments. This insurance makes it easy for lenders to offer low rates and have a minimum down payment requirement.
For an FHA loan, the minimum down payment requirement is only 3.5% of the home’s purchase price, and your credit score can be as low as 580. FHA loans also allow for more relaxed Debt to Income Ratios.
If you are interested in obtaining this type of loan and would like to see if you qualify, please contact Matthew Campbell at 714-241-2326 or 714-488-0227.
2. United States Department Of Agriculture (USDA) Loan
If you live in a rural or suburban area, you may be able to qualify for a USDA loan, which is a loan provided by the United States Department of Agriculture. Such as an FHA loan, a USDA mortgage is a government-backed loan. If you have a low income and do not live in an urban area, then you may be able to qualify for this loan.
A USDA loan offers affordable monthly payments and has a zero down payment requirement. To qualify, you must be a US citizen, have proof of at least two years of consistent income, and have a credit score of at least 640.
3. United States Department Of Veteran Affairs (VA) Loan
A VA loan is supplied by the United States Department of Veteran Affairs for current military members and veterans. This is a way for those serving our country to have the opportunity to become a homeowner. If you have served during wartime for at least 90 days, or have served at least 181 consecutive days during peacetime, you could qualify for this loan. If you are enlisted in the National Guard or are on the Reserves, you will need to have served for at least six years to qualify.
Benefits of a VA loan include low monthly payments and has a zero down payment requirement. Contact your Tustin loan officer today to get started on your application.
If you would like more information on an FHA, USDA, or VA loan, please contact Matthew Campbell with American Financial Network Incorporated at 714-241-2326 or 714-488-0227.