It is a question often asked by first-time homebuyers: as long as I can afford the mortgage payment each month, can I purchase a home and be approved for a home loan without a down payment? Although it is unlikely you will get approved for a mortgage with no down payment whatsoever, you may be able to get approved with a very low down payment.
If you’re looking for a mortgage that involves no down payment at all, you may be eligible for a VA loan if you are a veteran. If you served in the military and are interested in home ownership, a VA loan can be a great way to not only get approved faster, but for obtaining a mortgage with no money down. Without a VA loan, it is very unlikely that you would be able to get approved for a mortgage with no down payment.
A low down payment mortgage, however, may be an option for some candidates. FHA loans, which are backed by the government and have more lenient guidelines, are a good option for first-time homebuyers with lower credit scores. If approved for an FHA loan, you could put down as little as 3.5 percent down on your home.
Another option to consider is a HomePath mortgage. In order to qualify for this type of mortgage, you would need to buy a home owned by Fannie Mae. Similar to an FHA loan, a HomePath loan offers more flexible terms. Other features include no mortgage insurance, various loan types (adjustable rate, fixed rate and interest-only) closing cost assistance and no lender-requested appraisal. Additionally, you may be able to put down as little as 3 percent.
Although there are various home loans that make it possible for eligible candidates to put down little to no money in order to get approved, it can still be difficult. Credit qualifications may be more lenient, but many people still do not qualify for a low down payment mortgage. If you want to purchase a home of your own, but are having a difficult time getting approved because your down payment amount is insufficient, Peachtree Financial Solutions may be able to help. If you are receiving long-term payments from a life contingent annuity payment stream, you can sell some or all of your future payments for cash now. The immediate lump sum payout you receive from Peachtree Financial Solutions can be used for your home’s down payment, which can make it easier to get approved for a mortgage. Additionally, a larger down payment will lower your mortgage payments, so the more you have to put down, the better. Contact Peachtree Financial Solutions today for more information on how you can sell all or a portion of a life contingent annuity payment stream.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.