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Today, I'm going to talk to you about three different types of loans that don't require 20% down: VA loans, FHA loans, and conventional loans.
The VA loan is a great option for active and retired military. You can purchase a home with no down payment, and you don't have to pay the mortgage insurance premium. The mortgage insurance premium usually gets tacked on when you can't put 20% down because the lender considers you as more of a risk. Additionally, this loan is less strict with their credit check, and more flexible with your credit score in order to qualify.
Another option for buyers is the FHA loan. The FHA requires a 3.5% down payment to purchase a home, and they are less strict when it comes to your credit score. You will have the mortgage insurance premium added on, but the FHA loan gets you into a home. That way, you invest in your own property instead of paying of the landlord's mortgage.
Finally, there's the conventional loan. This option is strictest with credit scores, but you can buy a home with as little as 5% down. You can get a lower interest rate, but you need a higher credit score than you would with the FHA loan. You can get a 10, 15, or 30 year conventional loan.
If you have any questions, give me a call or send me an email. I would be happy to help you!
