Is the daunting 20% down payment on your dream home giving you sleepless nights? Don't worry, you're not alone. Many of us have been there, staring at our savings account, punching numbers into a calculator, and realizing that by the time we've saved enough, we might as well buy a spaceship instead.
But wait, don't throw away that dream board yet! There's hope in the form of low down payment mortgage options!
Why Settle for Less When You Can Buy Sooner?
With a low down payment option, you can stop daydreaming and start decorating! You'll be creating memories (and equity) in your new home before you know it.
The beauty of these loans is that they only require a fraction of the traditional 20% down payment. But, there's a slight catch - the mortgage insurance premium. Now, don't let that fancy term scare you away, it's simply an insurance policy that covers your mortgage if you're unable to repay it.
Busting the Mortgage Insurance Myth
You might be thinking, "Wait a minute, insurance sounds like an extra cost!" It is, but here's the good news. While the premiums do add to your monthly costs, they allow you to get into your home sooner and start building wealth.
Let's Talk Options!
There's no one-size-fits-all in the mortgage world. We've got a few low down payment options up our sleeves:
Government insured loans: Think FHA, VA, and USDA. These offer an array of options for all sorts of borrowers. Whether you're a first-time buyer or a military veteran, there's something for everyone.
Private Mortgage Insurance (PMI) options: We have the Fannie Mae's "Home Ready" loan and Freddie Mac's "Home Possible" loan, designed specifically for conforming loan amounts.
Each of these options has its own perks. For instance, FHA loans need as little as 3.5% down! So, whether you're planning to buy a cozy cabin in the woods or a stylish loft downtown, you can get started with just a small down payment.
The FHA Catch
While the low down payment is great, FHA loans do have a slightly higher mortgage insurance (MI) premium. It's like buying an all-you-can-eat buffet but finding out the dessert section costs extra. But don't fret, there are ways to navigate around it, such as refinancing into a conventional loan later.
Remember, the world of mortgages is as diverse as the homes you're eyeing. Finding the right fit requires a little digging and a lot of questions. But don't worry, we at Best Option Mortgage are here to guide you every step of the way!
Feel free to contact us anytime. Because when it comes to your dream home, we believe in making it happen sooner rather than later!
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Best Option Mortgage is a DBA of ML Mortgage Corp. ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2024 ML Mortgage Corp. All rights reserved.