When it comes to purchasing a home with a low down payment, there are multiple programs in today’s market, but for many potential buyers, the programs don’t fit.
FHA Home Loan – This 3.5% down payment home loan program has a lower loan limit then the conventional loan program and also has both upfront mortgage insurance fees and lifetime monthly mortgage insurance fees.
VA Home Loan – This 0% down payment program is only for qualified veterans and active duty of the armed forces and national guard.
USDA Home Loan – This 0% down payment, is only available in certain designated areas, on the outside areas of metropolitan cities.
FANNIE MAE Home Ready – This program opens the door for a 3% down payment on a conventional home purchase loan and is not limited to first time home buyers and you can even use this program, if you own a home currently.
The program also has lower mortgage insurance costs and often time better interest rates than a comparable 5% down conventional loan. It also allows for non-occupant income for qualification (such as a parent) and a host of other unique features.
There is one major caveat to the program and that is that the program does have income restrictions for certain properties (limiting income to a little over $66,000 annually in most metro areas in Arizona).
However, it’s very easy to check if a property has an income restriction at Fannie Mae’s Home Ready website: https://homeready-eligibility.fanniemae.com/homeready
Simply input the property address at the above address and it will tell you whether or not the property has any income restrictions.
So, if you are considering purchasing a home with a low down payment, make sure to look into the Fannie Mae Home Ready loan program, it may be your best option.
As always, it’s best to speak with a licensed lender, such as Strategic Mortgage, to see what all the available options are, for your specific situation.
For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: email@example.com or online at www.strategicmtgaz.com
Strategic Mortgage, LLC - AZ BK#0909514 - NMLS#158804 - Equal Housing Lender – Vasilios Bill Kamboukos Jr – NMLS#160440