FHA loans are backed and regulated by the Federal Housing Administration. These loans have lower credit score requirements than conventional loans and allow you to put as little as 3.5% down.
To qualify for a USDA loan, you must meet the income guidelines and choose a home located in an eligible rural area. This loan program offers a 0% down payment so you can finance 100% of the purchase price of your home. Homebuyers do pay ongoing mortgage insurance premiums during the life of the loan.VA loans are backed by the Department of Veterans’ Affairs. Private lenders issue VA loans to homebuyers who are either eligible veterans, current service members, or surviving spouses.
While each state and its counties have different variations of down payment assistance programs, here’s an overview of the common program categories you can expect. Grants are gift funds that you don’t need to pay back. Grants also don’t incur any interest or a lien on the purchased property. You can also use a grant to help cover closing costs for the home. This is one of the best options for down payment assistance and both state and local programs may offer grants under certain conditions.
Down Payment Resource is a company that uses technology and connections to help potential homebuyers find the down payment assistance programs they qualify for. You can browse their website to find more resources and even inquire about programs in your area.Another way to find down payment money is through gifts and loans from your family.