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Mortgage Options with No or Low Down Payments

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Mortgage lenders are making it easier get approved for a mortgage.

Fannie Mae and Freddie Mac have announced a new low-down payment mortgage program which requires just 3% down payment, joining other government agencies in offering loans which require little or no money down.

The new, retooled 97% LTV program is more forgiving toward first-time buyers and the new program can be used for home refinances as well with few restrictions.

In offering a 3% down-payment program, Fannie Mae and Freddie Mac bring yet another financing option to today's home buyers wanting to minimize their down payment.

Among the most popular low-down payment options in today's market is the FHA loan.

FHA loans require down payments of 3.5% and provide for flexible underwriting standards. Home buyers with less-than-perfect credit may find FHA loans to be more cost-effective than loans via Fannie Mae or Freddie Mac; and simpler to get approved.

VA loans are another popular option. Available to Veterans and active members of the military, VA loans allow for 100% financing and never require mortgage insurance.

USDA offers a ZERO down program. USDA loans are sometimes called "Rural Housing Loans" and do have income limitations as well as geographical limitations (i.e.- RURAL locations). USDA loans offer very low rates and allow for 100% financing. They also require just a small mortgage insurance premium as compared to other low- and no-down payment loans.

Lastly, each state often has a State Housing program with low down payment options.  Ask me for details about your state.  Today's home buyer has plenty of financing options to get you in a home!

Article Courtesy of

Scott McCauley, Mortgage Planner

Regency Mortgage Corporation

Phone: 603.610.8852


NMLS #174108

Licensed by New Hampshire Banking Department, NMLS # 1938


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