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What Kind of Mortgage Loan Programs Require a Small Down Payment?

What Kind of Mortgage Loan Programs Require a Small Down Payment?

A mortgage loan program designed to fit your budget? It might sound too good to be true, but mortgage loan programs range in style and structure to optimize convenience for potential buyers. Especially in an uncertain market, loan officials know that financial circumstances are far from predictable. That’s why you should take the time to find a loan program that works for you, reduces upfront financial burden, and creates an affordable payment plan.

Here’s a breakdown of the most popular mortgage loan programs with little to zero down payment:

FHA Loans

The Federal Housing Administration offers loans designed to help applicants with imperfect credit history. In addition to leniency with credit requirements, these loans are also some of the most affordable in terms of down payment - these charges are nominal, in the 3.5% range.

VA Loans

The loans available to qualified veterans have great advantages when it comes to down payments. Not only can qualified veterans save on mortgage insurance, but they also don't have to provide any down payment because their private lender loan is guaranteed by the VA. It's a great loan for veterans who might have some financial instability in their past; even bankruptcy doesn't automatically disqualify applicants.

USDA Mortgage

Also known as the rural housing loan, this mortgage program is designed to incentivize population in more remote areas. It’s a great option for any buyers that want to live in a more suburban or rural neighborhood where the population isn’t as high as other areas. Financing a home with this loan is extremely affordable, with zero down payment due at the mortgage signing.

Posted Feb 10, 2016 by Midland Mortgage Corporation