Don't let a big down payment keep you from buying a home. Here are four mortgage options that require as little as zero to $100 down.
"These programs typically come with a higher interest rate, but for the right borrower [they] are a great alternative to renting," says Anthony Van Dyke, president of ALV Mortgage in Salt Lake City, Utah.
Why the rate hike? According to Van Dyke, the rate is higher, because the potential risk for lenders is higher when borrowers put less of their own money down in a house purchase....
Option #2: FHA Down Payment Assistance Programs
Buying a home with 20 percent down may not seem realistic. But what if you could knock that number way down?
Well, with a Federal Housing Administration (FHA) loan, your down payment can be as little as 3.5 percent of the purchase price of a house, according to the U.S. Department of Housing and Urban Development (HUD) website.
If that's still out of your budget, then you may be able to go even lower with an FHA down payment assistance program. How exactly is that possible?
"FHA allows government entities and non-profit organizations to issue second mortgages to cover the required 3.5 percent down payment," says Van Dyke. How? Well, these programs offer qualified applicants loans or grants for their down payment - the latter being an even better option since that's money that doesn't need to be paid back.
This essentially means that you could secure a mortgage with zero down through a down payment assistance program - a boon for cash-strapped homebuyers.Read the entire Article Here: https://homes.yahoo.com/news/4-ways-to-pay-down-your-mortgage-172117215.html