Saving enough money to afford a high down payment for a home purchase can take a long time. Luckily there is an option of mortgage loans with a low down payment, to no down payment. The typical required 20% down payment is outdated. New homebuyers have been taking the low down payment loans and the experience has been not just enjoyable, but a huge financial relief.
In this post, we share what we learned after analyzing the home loan options available at Sun American mortgage.
1. FHA Programs
FHA home loans are designed to favor the low to moderate-income earners, which allows new homebuyers to take advantage of the lenient credit score requirements. An FHA loan only requires a 3.5% down payment & has more flexible qualification guidelines.
If you can’t qualify for the traditional mortgage loan types, FHA is a good alternative, thanks to the FHA guarantee. At Sun American Mortgage, you can get approved for an FHA loan if you have a decent credit score with at least 600s and can afford a low down payment of 3%. Compare to a more traditional mortgage guideline, where the loan applicant is expected to reach a credit score of 700-plus and a high down payment of as much as 20%. So, if you are in search of the best low-down payment, FHA home loans have got you covered!
2. Rural USDA Home Loan
This type of loan is available to those looking to purchase a home in the rural or suburban areas. This loan is typically offered a little outside of the St. George area to be considered rural. It’s available at no down payment, hence a low investment mortgage. Backed by the U.S. Department of Agriculture, the loan is designed for aspiring homeowners who are looking to buy outside of a large urban area. It allows you to renovate, build, improve or relocate your primary residence, within the eligible rural areas. This type of loan is available for 30-year fixed rates only. We also give you flexible qualification guidelines, giving you access to 103.5% of the appraisal value. A USDA mortgage requires an upfront guarantee premium and low rate monthly mortgage Insurance. If you are wondering whether you can qualify for a USDA rural home loan, come talk to one of our friendly loan officers will help you through the loan application process.
3. Utah Housing Loan
The Utah housing loan gives loan applicants access to a zero-down payment, offering flexibility to qualified first-time homebuyers. If you are a first-time home buyer in Utah and you meet the income and other eligibility requirements, you can get approved for the Utah Housing loan. This option provides a 30-year mortgage at a competitive interest rate and is available at Sun American Mortgage! However, the loan applicant is expected to live in the home and cannot purchase it as a rental property. Also, the borrower’s credit score should reflect an ability to pay bills on time, with a score of at least 620.
4. Veterans Home loan
The Veterans Administration home mortgage allows qualified members to access affordable home financing. This loan gives home buyers access to a zero-down payment as well, offering flexibility to qualified first-time homebuyers, so long as the home buyer is a veteran or the spouse of a U.S Vet. If you are a veteran and first-time home buyer in Utah and you meet the income and other eligibility requirements, you can get approved for this loan. This option allows a 30 year mortgage at a competitive interest rate and is also available at Sun American Mortgage! Again, the home buyer is expected to live in the home & cannot purchase it as a rental. Credit scores need to be at least 620 to be eligible for this loan as well.
If you are curious whether you can qualify for any of the home loan types mentioned above, then feel free to come talk to one of our friendly loan officers today! We would be happy to answer any questions you may have & will help you through the loan application process in a breeze.