Low Down Payment Programs for Home Buyers around Raleigh NC

Mortgage and Lending with Universal American Mortgage Company NMLS 46083

Low Down PaymentLow Down PaymentThere are more low down payment programs for home buyer around Raleigh NC than you may think.  Adding the historic low rates with an abundant number of homes listed for sale makes this the “perfect storm” for home buying.

You do not have to put 20% down to buy a home; you can put 3.5%, 3.0% or ZERO down and still get a great rate.  These low down payment loans are not new programs and have been around for decades.  Many of them were established right after the Great Depression to help jump start home buying.  This may be one reason why they are so popular now.  These great programs are:

FHA                       3.5% down payment

Conventional    3.00% down payment

USDA                    0.00% down payment 

VA                          0.00% down payment

FHA requires a minimum down payment of 3.50%.  Unlike other programs, the entire down payment can be a gift from a close family member.  FHA does not have risk based pricing, meaning borrowers with low credit scores do not pay a higher rate.  However, FHA does have upfront mortgage insurance premium (“MIP”) of 1% of the loan amount and a monthly MIP at 1.15%.  The 1% upfront MIP is financed into the loan amount.

Conventional loans do allow down payments as low as 3% and unlike an FHA loan there is no upfront MIP.  Their monthly MIP is the same as FHA if you have a FICO score of 680 or higher.

USDA has a ZERO down payment with an upfront MIP of 2%, which is financed into the loan amount.  Unlike the other programs, USDA has restrictions as to where the property is located and a maximum income the borrower can have to qualify.  Just recently, USDA did add a monthly MIP at .30%.

VA also has a ZERO down payment with an upfront VA fee of approximately 2.15%, if you are a first time user of your VA benefits.  VA’s monthly MIP is also ZERO.  As the name implies, this program is restricted to Veterans.


Who Can You Call For Your Mortgage Needs in North Carolina?

Call Shay Campbell a licensed Loan Officer, NMLS# 46083 and LO5 designation, located in the Triangle area of NC, which includes Raleigh, Cary, Durham, Chapel Hill, Apex, Holly Springs, RTP and the counties of Wake, Durham, Johnston, Chatham and Orange.  Shay has over 12 years of originating experience in North Carolina and can assist you with FHA, VA, USDA, NCHFA and conventional loans.  He has a special interest in working with first time home buyers.  Shay can be contacted at 919-624-8614, shay@shaycampbellmortgage.com  or visit his website at shaycampbellmortgage.com.

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