Does a 20% mortgage down payment intimidate you?

How about less than 5% or no down payment at all? Many first time homebuyers are unaware that several loan options exist that don’t require the traditional 20% down payment.

One of the oldest types of loans, the U.S. Department of Housing and Urban development insures the loan, which can mean a down payment as low as 3.5%. The closing costs are low and less than awesome credit could still get you qualified.

The Northwest has a lot of beautiful rural land and the U.S. Department of Agriculture helps finance homes in those area. There is no down payment required and the USDA backs the loans in case of default. Low credit scores aren’t typically an issue for this type of loan, but you’ll receive streamlined loan approval with a score of 640 or more.

The U.S. Department of Veterans affairs offers veterans, servicemembers and eligible surviving spouses loans and financing related to buying, building, repairing, retaining or reconfiguring a home — often without a down payment and private mortgage insurance.

Pre-K through 12th grade teachers, emergency medical technicians, law enforcement and firefighters are eligible to get 50% off the list price of a home in a “revitalization area” through the U.S. Department of Housing and Urban Development. Buyers also have to commit to living in the property for 36 months as your sole residence among other requirements.

Another loan available through the U.S. Department of Veterans Affairs (VA), this loan is available to eligible Native American veterans to finance a home’s purchase, construction or improvement on Federal Trust Land. There is no down payment or mortgage insurance required.

Your state and local government may be able to help with down payments and other aspects of financing a new home purchase.

These loan options have great potential to get first time buyers into the housing market. No matter which home you decide on, remember that title insurance from Alliance is a great way to protect your investment.

If you would like more information about title insurance or have questions about a particular transaction, contact your local Alliance Title representative.

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