There are several different aspects that go into creating diverse mortgage loan program options for buyers. That’s because every loan applicant is coming from a different background and might not be able to fulfill the same requirements at first glance. One of the biggest hurdles for many homeowners is getting the money together for a big down payment. But when you remove that obstacle, what seemed like a marathon at first becomes a walk in the park.
Here are the details about mortgage loan programs you need to know:
In general, the logic behind a down payment works like this: when large sums of money are in question, lenders want evidence of security before they will front your loan. A down payment acts as a guarantee that you won’t default and that you have the ability to gather some money together before the mortgage gets approved.
The FHA backs affordable loan options that feature small or zero down payments. These options are designed to be affordable for buyers with bad credit histories. These loans typically have a minimal down payment or an annual premium, but neither of these is prohibitively unaffordable.
These two loan providers are designed to provide financial aid for qualified veterans. Military applicants interested in a loan with the VA or with a participating credit union don’t have to worry about making any down payment. There are some additional funding fees that go along with each option, so doing your research can literally pay off. If you find an option that fits your eligibility, you could be signing a mortgage with no money down and great interest rates to boot!