In Sean La Rue Home Loans, we’ll always advise to anyone who is thinking about acquiring a new property, to first focus in saving up for a good down payment. You’d always have things easier in a 15 year old mortgage than in a 30 year old one(make sure you check out our article: Why You Should Get a Loan). But this is surely a task that it’s easier said than done, and in this new post of Monday Mortgage Madness we are going to tell you about different programmes that could make it easier for you.
1- First Time Home Buyer Programs in Your State
If you are struggling to have a good down payment there are programs in many States that could facilitate that for you, in case you are a first time buyer. So make sure to do some googling and you could be lucky to find one of these.
There is an extended variety of assistance programs, not only for first time buyers, but for those who work in public services too, such as teachers, paramedics,nurses,firefighters… and plenty of other public service jobs.
2- Loans for Native American Home Buyers
This program is designed to offer home ownership, property rehabilitation, and new construction opportunities for eligible tribes, Indian Housing Authorities and Native American individuals and families wanting to own a home on trust land or land located in an approved Indian or Alaska Native area.
American Indians or Alaska Natives who are part of a recognized tribe, federally recognized tribes, tribally designated housing entities and Indian Housing Authorities will be eligible to apply for this program.
However, in the Section 184 Program, only single family homes will be eligible and loans must be fixed rate and 30 year old or less,while ARM loans are not an option.
Current rules require a down payment of 2.25% of the purchase price for loans over $50,000 and 1.25% for loans under $50,000
3- VA Loans
For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. A big con of VA loans is that it’s not a requirement to pay any down payment. Some interesting facts for any that may be considering applying for this program:
1-They’re reusable, which means that once the loan is paid off, you can apply for another and another one with no limitations.
2-You can secure one despite having a history of bankruptcy or foreclosure.
3- No mortgage insurance- which allows to save more money every month.
4- There are limitations on co-borrowers.
5- They come with a mandatory fee
4- Mortgage Insurance
The Mortgage insurance is a must for any risky borrowers with a low down payment. It is crucial as it protects a mortgage lender or title holder in case that the borrower can’t be consistent on payments, dies or is otherwise unable to meet the contractual obligations of the mortgage.
5- Retirement Account Loans and Withdrawals
Having a retirement account can be very beneficial as it can fund your down payment. What you have to consider is if you’ll be able to repay the money you are taking out, as this can be a dangerous route to take for your future finances.
So that’s all for this Woke Wendesdays post, hope you’re ready now to take it to the next step and apply for a loan.