The decision to buy a house in St. George may be exciting to make, but the process of buying a home could become overwhelming. One of the considerations when buying your first house relate to financing the plan. The first time or repeat homebuyers have two options. Either buy a home for cash or take a home buying mortgage. We are interested in the second option of purchasing a house through a mortgage facility.
Therefore, mortgage borrowers can choose the low to no down payment mortgage or take the conventional loan that requires a 20% down payment. So, what are the perks that come with the no to low down payment home mortgage? This article examines the advantages of choosing a low to no down payment mortgage when buying a house st. George.
1. Become a Homeowner Sooner
Raising a 20% mortgage down payment could require months, if not years of saving. The low to no down payment mortgages could help you to fast track the homeownership dream. Therefore, an option like the 3.5% on FHA home loan could require a few or a single paycheck to clear. This allows you to become a homeowner sooner than you expected.
2. Have more Cash To Pay Property Maintenance
Home mortgage down payments have left a majority of new homeowners house rich but cash poor. Therefore, options that allow you to spend less on your home mortgage will mean you have more money in your pocket. This amount could be used to fund property maintenance or even buying new home furniture.
3. Qualify for First time Home Buyer Program
Many home lenders offer lower down payment options for people purchasing their first home. For instance, the VA home loan allows qualifying members to own a home at 0% down payment.
4. You Qualify for a Mortgage with Low Credit Score
Compared to conventional home loans, some low to no down payment home mortgages allow you to qualify for a home mortgage even with a lower credit score. Therefore, this helps you to fast track the homeownership ambitions. For instance, FHA home loan accepts mortgage borrowers’ applications with a credit score of as low as 580, with a down payment of 10%. The VA home loan accepts applications with a low credit score and sets no down payment requirements for the borrower to qualify for a loan.
Now that we have looked at some of the rewards that come with a low to no down payment home mortgage let us examine the borrowers’ options.
1. The FHA Home Loan —Low Down Payment Home Loan (3.5% down)
One of the low down payment home mortgages is the Federal Housing Administration home loan. The FHA home loan allows first-time homebuyers a chance to afford a home with as low as a 3.5% down payment.
The FHA home loan is available through appointed mortgage lenders to help more Americans buy a home. Besides the low down payment requirement, the FHA home loan offers friendly mortgage terms. For instance, the mortgage allows borrowers with a credit score of at least 580 to borrow a mortgage so long as they can pay a 3.5% down payment. Alternatively, where the credit score is below 580 but above 500, the borrowers can still get a loan with a down payment of 10%.
2. The HomeReady™ Mortgage – Low Down Payment Mortgage (3% down)
The HomeReady™ Mortgage is a unique home mortgage requiring a low down payment. Backed by Fannie Mae and available from various lenders, how down payment mortgage offers below-market mortgage rates and reduced mortgage insurance costs. Therefore, the HomeReady™ mortgage allows qualifying borrowers an opportunity to own a home.
3. The VA Home Loan — No Down Payment (0% Down payment)
The VA home loan is an excellent example of mortgage loans providing up to 100% financing. The US Department of Veteran Affairs guarantees the home mortgage, and it is available to active service members or the surviving spouses. Like the FHA home loan, the VA home loan was established to improve home affordability in the US.
Therefore, we have looked at the popular low to no down payment home mortgages available in ST. George. When applying for the low and no down payment home mortgage, verify whether your preferred mortgage lenders offer the particular option you are interested in. borrowing.