LoanCentral's Real Estate Lending Blog

It was recently brought to my attention that many potential homeowners believe they need a 20% down payment in order to buy a house. This couldn’t be farther from the truth! This week, we focus on low down payment programs. These programs are abundantly available…share the word!!!

Zero Down Loan Programs: the USDA Rural Housing Program allows zero down options for those purchasing in what USDA defines as rural areas. In King County this includes areas east of the City such as Duvall, Carnation, Fall City, Snoqualmie, North Bend, Monroe, Enumclaw, etc. There are income restrictions on this program, however it allows for income up to approximately $90k for a married couple. For those who have VA benefits, VA still offers zero down financing Both of these programs are excellent opportunities to get into a home with no down payment!

Conventional 3% Down Programs: conventional financing is now available with a 3% down payment for those with at least a 700 credit score. Mortgage insurance rates have recently been lowered for these programs making them a very attractive option. In addition, there is another 3% down conventional program with some expanded guidelines such as allowing for a 680 credit score, entire down payment from gift funds and some added benefits for teachers, law enforcement workers, fire fighters, healthcare workers and military personnel.

FHA 3.5% Down Programs: these programs enjoy a bit more forgiving underwriting guidelines than conventional low down payment programs, including credit scores down to 620, entire down payment can come from gift funds, and loan amounts up to $567,500.

Call today for more information on these programs!