Mortgage Programs With No Down Payments
There is a new mortgage trend that many lending institutions are starting to jump into – zero to 3% down payments. Although these programs are not available everywhere, they are usually designed to assist low to medium income families or first-time homebuyers in purchasing their properties through a more affordable method. While each program has its own requirements and qualifications, they share similarities. For those who want to buy a house, but are held back by the down payments these new programs may just be the solution:
Fifth Third Mortgage
Fifth Third Mortgage offers a 3% down payment assistance program for low-income borrowers or those who are looking into buying in designated low-income areas. The program also offers reduced insurance premiums and is available in Michigan, Indiana, Illinois, Kentucky, Tennessee, Ohio, West Virginia, North Carolina, Georgia, and Florida.
Guaranteed Rate
In collaboration with City of Chicago and Chicago Infrastructure Trust, Guaranteed Rate launched the Chicago Home Buyer Assistance Program. The program offers 1% down payment loans that are designed to assist Chicago residents in becoming homeowners. Additionally, it offers up to 7% of the ending loan amount as a forgivable grant. Residents who have an annual income up to $133,000 – regardless the number of family members – qualify for the program. The program requires the borrower to contribute less than 1% of the purchasing price or $1000.
BancorpSouth
BancorpSouth’s “Right@Home” program offers zero down mortgages for borrowers with low income. The qualified candidates are required to provide a minimum contribution of $500 and must have a FICO or credit score of 640. However, for those who don’t have a valid credit score, the bank considers other unconventional credits to evaluate the candidate’s eligibility.
Wells Fargo
Wells Fargo launched a new low-down payment program, known as yourFirst Mortgage, for low to medium income families or first-time homebuyers. The program requires a FICO score of 620 and provides the option of purchasing mortgage insurance separately or with the payments at a low rate.
Bank of America
Bank of America offers a program with a 3% down payment rate that requires no mortgage insurance. Candidates must have a FICO score of 660 and if they happen to be first-time homebuyers, they must participate in homebuyer’s education.
These programs are great options for families with low-income or first-time homebuyers. As more banks are launching their own version of low down payment programs, many families are receiving the opportunity to buy properties that they never thought of in the past.
Sources
http://www.housingwire.com/articles/37452-fifth-third-mortgage-now-offers-mortgage-with-no-downpayment
http://www.housingwire.com/articles/37383-guaranteed-rate-offers-1-down-program-through-homebuyer-grant-with-chicago
http://www.housingwire.com/articles/37466-bancorpsouth-now-offers-zero-down-mortgages
http://www.housingwire.com/articles/37127-wells-fargo-now-offers-3-down-payment-mortgages