Until now, the lowest down payment option out there was 5% down. Well, you heard it here first, now you can put as little as 3% down and not have monthly mortgage insurance payments!
You may be asking, “Is this type of loan risky in some way?”
The answer is not at all! Here’s why: just like we explained in last week’s article, Why FHA Might Be A Good Option Now, the government has just created wonderful initiatives to help first-time homebuyers get into the housing market. This is just another way to make that possible through yet another government agency.
Long gone are the days where you need to save up a ton of money for a down payment. Back in the old days, if you wanted to buy a house, you had to put down 20% to be able to get a loan at all.
With these brand new programs, you get a 30-year fixed-rate loan. The interest rate will be a little higher than if you were putting more of a down payment, but your monthly payments will not increase dramatically by the slight increase in interest rate.
Don’t panic, we can help you do the math and figure out if this is a good option for you!
All in all, the loan options have become much more plentiful and safe for first time homebuyers. These loans are only for first time homebuyers so take advantage of them while you can!