Yes, You Can Buy A Home With Less Than 20% Down!

I would like to continue the discussion about the myths surrounding buying a home. As I stated before there is a ton of information on the internet and myths about Home Loans found on the internet and other media.
One of the biggest myths is you cannot qualify for a home loan unless you have 20% of the sales price for a down payment because it is so hard to qualify for a loan without a 20% down payment.  This myth cannot be farther from the truth.
If you have good credit and job stability there are several different loans you may qualify for with a small or no down payment.
Many of you have heard about the FHA loan, this loan requires just a 3.5% down payment and does not have income limits for qualifying.  Also, if you are short of money to close escrow and need down payment assistance you can use the CHDAP (California Down PaymenImaget Assistance Program) with your FHA loan.
CHDAP will loan you up to 3% of the sales price towards your down payment and closing costs for your first home with an FHA loan, so you will only need to come in with ½ of 1% for your down payment and your closing costs to purchase your new home.  There are income limits to this program based on the size (the number of people) in your household.  This program is geared towards the moderate to low income buyer.
The VA loan is a great loan if you are active military or a Veteran.  The VA loan requires a 0% down payment.
If you are buying a home in a rural area the USDA loan is a good option to look into, there is no down payment requirement, but there are income limitations and property eligibility requirements.
We now have Conventional programs with 3% and 5% down, but your credit, job stability and money/reserves need to be stellar in order to qualify.  If you are able to put 10% down on your new home it will be much easier to qualify for a conventional loan.
The loans listed above are just the basic loans available. Some Cities and Counties have additional loan programs available.  Email or Call me today with any questions you may have.
I will be writing a series of informational pieces for my blog in the weeks to come.  Please let me know what you would like me to talk about.

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