Programs for people who don't have the cash to make a 20% down payment.
Alternative Financing
There are a number of state and federal programs designed to help people make a down payment. Each program has different criteria for eligibility.
FNMA/FHLMC
Conventional loans usually offer the lowest mortgage rates but require strict automated underwriting on a limited basis.
FHA loans
With an FHA loan, you can put as little as 3% down, but there are lots of limitations on who qualifies.
VA loans
If you are a U.S. military veteran you may not have to make a down payment. For a fee, the federal government will guarantee your loan as long as it falls within limits.
FmHA loans
Buying a small rural property? Get on a waiting list for a FmHA loan and the government might subsidize your purchase.
Private mortgage insurance
You can pay an insurance company to insure the mortgage. If you default, they pay the lender the balance of your loan.
80-15-10/75-15-10: Combo loans
Put 10% down, get 1 loan for 80% of the purchase price and a 2nd loan for 10% at a little higher interest rate.
No Investment required
With a gift downpayment and/or closing cost grant you may have the opportunity to get help with a home purchase.
80% Reduced Documentation
Mortgages for self-employed and salaried borrowers that don't want to produce tax returns but have other compensating factors.
2nd Homes and Multi-Family Property
Typically properties which are no greater than 1-4 multi-family and common for the area in which the loan is being made.
Other Options
Other ways a borrower may be able to obtain financing:
Family or Non-Profit gift
Seller and Broker Financing
Find a Private Mortgage Investor
Co-Borrower Non-Occupant status
First and/or second lien position.
The cost involved for a Combination loan is very similar to a regular home loan, but it has many more benefits. Utilize Florida Home Loan to find your Lender for purchase loans, refinance, reverse mortgage and home equity loans.
