Financing in Today’s Market with Less than 20% Down
Contrary to popular opinion, you don’t need 20% down to get a great loan in this market:
Power Plus: This is First Integrity’s premier program. Power Plus allows borrower’s with a credit score of 740 or better to avoid PMI with only 10% down. Those in the healthcare field can take advantage of a 5% down option. If you are a Jumbo loan buyer (417k plus mortgage) you can avoid the costly jumbo mortgage with a 1st mortgage of 417k and a 2nd mortgage up to 200k, both at the same rate.
FHA: The Federal Housing Administration offers 30 year fixed rate mortgages to anyone looking to buy a new home or refinance their existing mortgage. You don’t have to be a first time homebuyer. The maximum mortgage amount is $281,250, the minimum down payment is 3.5%, and the minimum credit score is 620.
VA: The Veterans Administration has a great program for active or retired military that allows for 100% financing with no monthly mortgage insurance.
Conventional: Conventional loans offered through Fannie Mae and Freddie Mac requires at least 5% down. While they will allow as low as 620 for a minimum credit score, the penalties are significant if the score is below 700, and FHA might be a better option.
The housing market is poised for recovery. Now is the time to take advantage of low rates and affordable prices.
If you have any questions or comments about this article, please contact Matt Eversgerd at 314-620-7227 or matt@firstintegrity.com.