If you're looking at buying a new home, you already know that the larger down payment you make, the less you'll have to pay for your monthly mortgage. But, your mortgage down payment shouldn't wreck your finances! That's why Midland Mortgage wants you to know about these 3 down payment options to help you budget your move to home ownership.
Today, mortgages don't require the 20 percent down payment. Partner with a mortgage company that offers low down payment options so you don't deplete your savings. There are programs to help economically disadvantaged buyers or those looking to buy a home and have prior military service. There are even programs that offer low down payments to first time home buyers.
If you're looking to buy a home in a rural area and certain suburban locations, a USDA home loan is another option for a low or zero down payment. In an effort to help rural communities improve home ownership and the condition of these properties, the USDA has set aside funds that support low interest rates and no down payments to prospective buyers. Discuss the Direct Loans program issued by USDA to see if you meet the income levels required.
If you have a credit score of 580 and higher, you may qualify for the minimum FHA loan down payment of 3.5%. The FHA works to remove the hurdles to home ownership by offering budget-friendly down payments. The traditional 20% down payment would be a roadblock for many prospective homeowners. If you have a lower credit score, you may be required to pay a 10% down payment.
If you need help coming up with your South Carolina mortgage down payment, start off your home financing with Midland Mortgage. We can help lower your initial down payment and work to help you take full advantage of lower interest rates. Call us at (803) 854-9484 or contact us today for more information on the different down payment options Midland Mortgage offers.