Low Down Payment Mortgage Options
When you are saving to buy your first home, planning for a traditional 20% down payment can seem like a monumental task. The truth is that there are a number of low down payment mortgage options available today.
Low Down Payment Mortgage Options at TexasLending.com
Conventional
- Down Payment: 5% of the Home Purchase Price
- Credit Score Minimum: 620
You can qualify for a conventional mortgage with a minimum 5% down payment. This an achievable option for a low down payment mortgage for first time home buyers with a good savings plan.
Buying your first home requires saving for the down payment and closing costs, but you should also consider saving for the cost of moving and setting up your home. Read more about creating a Down Payment Savings Plan in this article.
FHA Loan
- Down Payment: 3.5% of the Home Purchase Price
- Credit Score Minimum: 580
This is a government insured loan through the Federal Housing Administration. FHA purchase loans have a more flexible credit limit for first time home buyers. The FHA loan is a great low down payment mortgage option.
First Time Home Buyer Loan
- Down Payment: 3% of the Home Purchase Price
- Credit Score Minimum: 620
This low down payment mortgage is exclusive to first time home buyers through Fannie Mae. At 3% down and a credit score above 620 this could be your best mortgage choice.
VA Loan
- Down Payment: 0% of the Home Purchase Price
- Credit Score Minimum: 620
You must be a Veteran of the US Armed forces to qualify for this loan program. The 0% down payment mortgage is a great benefit to veterans through the U.S. Department of Veterans Affairs. We are proud to help our veterans buy homes with this low down payment mortgage option.
USDA Loan
- Down Payment: 0% of the Home Purchase Price
- Credit Score Minimum: 640
The United States Department of Agriculture requires a higher credit score for the USDA Loan, but 0% down payment. In order to qualify for this loan, you must be purchasing a home in a “rural area” as determined by the USDA.
We are here to help you understand your low down payment mortgage options. No two mortgage transactions are alike and helping you make a plan for buying your first home is something we are proud to do. Speaking to one of our licensed mortgage consultants is the best way to get information about your home buying potential.
Applying for pre approval for a low down payment mortgage is free at TexasLending.com.
Reach out to us to get started today!
