How to Buy a New Home in 2019 with Little to No Down Payment
A down payment doesn’t have to be a barrier buying your first home. If saving the standard 20 percent of the purchase price is not realistic for you, there are other options. You could opt for a no-money-down mortgage. You could also go with one of the following options, which require little to no money down.
Veterans Affairs (VA) Loans
provide a no-money-down option for active and honorably discharged military members, as well as their surviving spouses. These loans are also available for those who have served at least six years in the National Guard or the Reserves.
Available for loans up to $726,525 in pricier regions, VA loans are guaranteed by the U.S. Department of Veteran’s Affairs. With these loans, homebuyers are not required to have mortgage insurance, and bankruptcy and bad credit are not automatic disqualifiers.
Federal Housing Administration (FHA) Loans
are available for homebuyers who meet specific requirements set by the FHA and who have credit scores of at least 500 (with a reasonable explanation for low scores). These loans are also available to homebuyers with recent bankruptcies, foreclosures, or short sales.
For qualifying homebuyers, the FHA will insure loans for up to $726,525 in pricier regions. These loans require:
· 3.5 percent of the purchase price down
· Upfront payment of mortgage insurance premiums.
Available from nearly all lenders, theis based on an innovative underwriting process that allows a homebuyer to qualify based on the income of everyone residing in the home. That means that, if you live with your spouse, parent, and adult children, the income they earn can be used to help you qualify for a HomeReady® Mortgage.
Additionally, income from boarders – even if they live in a non-zoned rental and pay in cash – can be used to qualify.
Backed by Fannie Mae, the HomeReady® Mortgage is available to those with credit scores of at least 680. It only requires 3 percent down and comes with cancellable mortgage insurance, with some restrictions.
Conventional Loan 97
More affordable than FHA loans, thedoes not require any minimum credit score. It requires a 3 percent down payment, which can come from gifted money if that gift has come from a:
· Blood relative
· Spouse or domestic partner
· Fiancé or fiancée
· Legal guardian.
Backed by Fannie Mae and Freddie Mac, these loans are available for up to $484,350 for single-unit homes, and they must have a fixed mortgage rate.
Want to Get Cash Back When You Close on Your New Texas Home? New Home Gurus Can Help!
While there are various options for putting little to no money down when you’re buying a home, you can also get cash back at closing through a special first-time homebuyer program from New Home Gurus.
Once you’ve chosen your dream home in Houston, Fort Worth, Dallas, or, our program lets you work with experienced Realtors® who will advise and guide at every step moving forward, from drafting an offer through closing.
Upon closing on your new home, we’llwith you, meaning that you can expect to get back an average of $4,500 to $12,000 when you close on your new home!
Find Out How Much Cash You’ll Get Back at Closing
Call (281) 668-8124 or
That extra cash can help you cover closing costs, moving and cleaning costs, and more! Our gurus are standing by, ready to answer your questions and explain how our commission-sharing program works.
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