Recent changes in federal regulations on mortgages have eliminated the popular zero-downpayment financing programs that were available through the major mortgage default insurers.
This does not mean that you will be unable to purchase a home without a minimum of 5% downpayment saved.
All Source Mortgages uses several lenders who have options available even if you don't have 5% or more saved towards the purchase of a home. It is important that you get in touch with a mortgage professional in order to discuss all of your options.
Fast Facts about Downpayment programs offered by All Source Mortgages
Do I qualify for a mortgage with Less than 5% downpayment?
As long as you can prove a strong credit history IE: established credit history combined with strong credit score, you may be eligible for a cash-back or flex-down mortgage, essentially where the downpayment amount is borrowed.
What is strong credit score?
A credit score of 650 or above and minimum of 24 months of revolving credit (IE credit card/line of credit) is typically the minimum requirement used to qualify for these types of programs.
Does "Zero-down" mean that I don't need any money saved to buy a home?
Lenders will still require you to prove savings of at least 1.5% of the purchase price of home. This amount is to verify that you will have enough money on hand at possession to pay for closing fees such as lawyer's fees, property tax adjustments etc. Ask your mortgage broker or lawyer for a complete list of expected costs of purchasing a home.
I have a few credit "issues", but would still like to purchase a home.
We do have access to lenders that are willing to provide mortgage financing even if you don't have A credit. In cases where credit score is under 650, the rate that you will be offered and downpayment amount will likelybe related to your credit score. Typically, the lower the score, the higher the rate due to the risk associated with the deal. It is best that you discuss your credit history with your Mortgage Development Manager in order to determine your options.
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