House on a heap of money
House on a heap of money

When you are in the process of buying a home, many traditional avenues to that goal required a 20% down payment. If you closely examine it, it makes a bit of sense: you are going to be the owner of a house that costs $300,000, and the bank and private lender are covering you for the purchase. Even if you are dutifully making payments, it is not only an act of faith, but collateral if you will to embark on your journey. The rates for 30-year loans, 15-year loans, and many other types are still low enough now during the fall of 2016 to want to take advantage of.

down-payment-00003The conventional mortgage is one instance during which a 20% down payment is required, because after it is collected, that means that Private mortgage Insurance is not at that point required. The main reason the PMI is collected is to protect the lender in the worst case event of foreclosure, but since it does cost the buyer money, it has a reputation as kind of a pest. Because of the existence of PMI Insurance, home buyers can get mortgage-approved with less than 20 percent to put down, and eventually, the need to keep paying your premium can subside. Because of the way that homes keep rising in value with current trends, a buyer that puts just 3% down would pay PMI for fewer than five years.

down-payment-000004VA Loans are no-money down programs available to those who served in the military, and spouses who are widowed by them. These are guaranteed by the U.S. Dept of Veteran Affairs, and have many positive similarities to an FHA loan. The agency will outright guarantee repayment to lenders that are making the loans, which absolutely meets the guidelines for most mortgages in the state of Virginia. In high-cost areas such as Hawaii and San Francisco, they allow for loans over $1,000,000, and bankruptcy along with other credit issues do not immediately render you unable to secure them.

down-payment-000005The very common FHA Loan is one that averages around 3.5% down, and while they themselves are not the source of the loan, they insure and guarantee them. FHA mortgage guidelines are very well-known and favored in the industry, because they have a liberal approach to credit scores, and down payments as well. The HomeReady Mortgage is a 3% down options that is backed by Fannie Mae, and available from a variety of US lenders. With this new approach to home lending, the income of every single person living in the home can be used to move through the approval process. Here at the Wilson Group, we can also guide you through many homebuyer grants, and paperwork that can help you better understand these many programs, who’s average down-payment rate still hovers around 3.5%. Here at this link, you can Search Chesterfield Homes for Sale, and we’ll be here to assist you with the search when you find one that fits you and your family best.

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