Don’t Let Fear of a Down Payment Keep You from Homeownership.
May 11, 2020
Even if you don’t have a big down payment, you could still get a home loan. From public assistance to specialized loan programs, there are more financing options available than you may think. Primary Residential Mortgage, Inc. can help you find one that fits your situation. Here’s more helpful info about down payments to get you started.
You don’t need a 20% down payment.
While having a good chunk of money to put toward a down payment can help keep long-term costs down and help kick start your equity, you don’t necessarily need twenty percent.* We offer a variety of loans for people in all kinds of financial situations, including loans with little to no down payment required.†
Does having a large down payment help?
Yes. It can help. The biggest benefit of having a lot of money to put down is that it means you don’t have to borrow as much. With a smaller loan, you’ll pay less in total interest and you can start developing equity sooner. It also proves to lenders that you’re serious and that may affect the types of financing you can get.
You may be eligible for down payment assistance.
Many government bodies work with nonprofit agencies to help borrowers with their down payments, especially if you’re a first-time homebuyer. Homeownership gives people roots in the community which can bring stability to communities.
For some of these programs, you’ll need to pay back the money for the down payment. But, in some cases, you can qualify for a grant, which means you get help with the down payment and don’t have to pay it back.
Some of these types of programs may be limited by a homebuyer’s income and the neighborhood in which they plan to buy. Talk to your local PRMI Loan Officer to find down payment assistance programs in your area.
Some loans don’t require a big down payment.
You can qualify for an FHA loan with a credit score as low as 500-580. These loans often have smaller down payments than conventional mortgages, so you may be able to get into a home faster.
VA loans are for veterans and military service members. You may be able to get a VA loan with no down payment.† These loans also have lenient credit requirements and don’t require mortgage insurance.
If you’re interested in buying a home in a rural area, a USDA loan could help. You may be able to buy a home without a down payment.†
Renovation loans (203K)
Interested in buying a house that needs a little extra love? A 203K renovation loan could help you buy a home with money to pay for renovations. These loans have minimal down payments and don’t require perfect credit to qualify.
Sometimes the best way to find the right home is to build it yourself. One-time-close construction loans let you buy and build a home with one closing. You usually don’t have to make mortgage payments until the construction is complete.
Your home awaits!
Your goal of owning a home may be closer than you think. You don’t have to spend years saving up before you get started. You have options, so get home.
Contact a PRMI Loan Officer today to discuss your down payment options.
If you're ready to take the next step, work with a team that can provide the personal attention you deserve. Our mortgage company has helped over 200,000 borrowers fulfill their dream of home ownership. We'd love to help you too!