Buying a Home in 2011
HUD $100 FHA Program *Down payment waived- $100 down*
Qualify for an FHA loan without the 3.5% down payment if you purchase HUD owned foreclosure. Some lenders do not offer the $100 down program so make sure you ask your mortgage broker if they have this program. Up to 6% seller concessions towards closing costs.
Local Down Payment Assistance Programs
Chances are no matter where you are living, there is a down payment assistance organization near you. Most States, Counties and Cities offer grant funds to assist first time home buyers. This grant will be combined with an FHA mortgage. Typically, most programs require $1,000 down out of pocket from the home buyer. Also, the grant assistance in most cases does have to be paid back.
FHA 96.5% Financing *Minimum 3.5% down payment*
New reduced up front mortgage insurance. Typically, requires 620 credit score. Up to 6% seller concessions towards closing costs. Gift funds from family ok to pay for closing costs.
VA 100% Financing *zero down*
Elegible veterans. Up to 6% seller concessions towards closing costs. This is the best loan in the country in my opinion because it offers 100% financing, most competitive interest rates and NO monthly mortgage insurance.
USDA 100% Financing
Rural loan program. No money down. Ask Lender.
Homestep Program *5/3% down*
Fannie Mae foreclosures. Most lenders will only offer 95% financing on this program. 6% seller concessions towards closing costs and NO monthly mortgage insurance. Slightly higher interest rates then FHA.
