Home financing can be a pleasure or a pain. It really depends on you. But before we go any further I want you to read this article from Forbes magazine which talks about  The Perfect Loan File.  This should be required reading for anyone buying a home. More specifically, it goes into why the lenders ask for so many documents just to get a home loan. 

 But for many, just getting the down payment can be discouraging enough. Fear not. There are multiple ways to accomplish this. 

However, it's a common misconception that you always need 20 percent down to buy a home.

Here's the lowdown on the most popular low-down alternative payment options:

FHA Loan

 Traditionally the mortgage of choice for first-time buyers, the Federal Housing Administration (FHA) offers government-insured loans with as little as 3.5 percent down.

 The most popular FHA loan option, the 203(b), is widely available from lenders across the country. You "may" qualify with a credit score of just 500, although there may be limitations on many condo purchases.

Home Possible from Freddie Mac

 This program allows you to put between 3 and 5% down, as long as you intend to use the home as your primary residence, and don't currently own or share ownership of another house. You'll also need to complete a required homeownership education program online.

Conventional 97 from Fannie Mae 

 Just 3% down is enough to help you qualify for a Conventional 97, as long as you're applying for a fixed-rate mortgage on a single-family home that's less than $417,000. You'll also need to participate in a homeownership education program, and at least one of the purchasers applying for the loan must be a first-time buyer.

HomeReady from Fannie Mae 

 Another option that requires as little as 3 percent down, HomeReady can also offer below-market interest rates. Additionally, this program allows non-occupant borrowers to apply. For example, parents can secure this type of loan for a young adult who's just starting to establish credit.

To discuss the best option for you and to get a head start on your home search, contact us right now!

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