Once you have decided to contact a McKinney, Texas realtor about your next home purchase, you will want to consider how much money you have to make towards a down payment. Depending upon the type of mortgage loan you are able to get approved for, the amount of the down payment can vary from three to as much as 20 percent down. There are some low-deposit mortgage options you should know about.
- Federal Housing Administration – The Federal Housing Administration funds a majority of the homes financed in the United States. If you qualify, you can receive a three to five percent down-payment option. These loans are financed at a very low interest rate. You must apply with an FHA approved lender and meet minimum eligibility requirements. One note – with an FHA loan, you will be required to buy mortgage insurance through the FHA. This is usually a percentage of the loan, around 1.5 percent in additional to .5 percent for every year of the note term.
- Veterans Administration – The Veterans Administration offers low down-payment options and low interest rate financing to qualified veterans. You can obtain financing through a private lender, but the VA will guarantee the loan. There is no mortgage insurance requirement with a VA loan. If you are a veteran, have an acceptable credit score, and were not dishonorably discharged, you should have an easy time qualifying for a VA home loan.
- HomePath Mortgages – If you are looking into purchasing a Fannie Mae property, you may qualify for a HomePath mortgage. These mortgages are a program to promote the sale of Fannie Mae properties. Often, you can find a Fannie Mae home at prices well below the market average. These loans are low-down payment, low-interest loans. Again, this loan is only for people purchasing Fannie Mae properties.
- Rural Development Housing – Your McKinney, Texas realtor can also give you information about the Rural Development Housing program. It is sponsored by the U.S. Department of Agriculture. Its purpose is to provide affordable housing to low-income families in rural areas. This program is for new homeowners and provides low-deposit mortgage options, as well as low-interest terms.
Your McKinney, Texas realtor may know of even more low-deposit options available and help you find a lender to purchase your next home. Schedule a consultation today to review all your mortgage finance options.