Most direct house buyers in the area are often concerned about the down payments required for the purchase of their new home. They are also likely to wonder if they can get a mortgage with a lower down payment. There are many mortgage lenders that offer mortgages to buyers with a low down payment. The type of mortgage that you buy will also depend on your credit, the type of home you want to buy, and how much you need to borrow. Here are several common down payment mortgage options.
Traditional Fixed-rate Mortgage: Your down payment will be determined by the type of loan you take out, your credit history, and your income. Some traditional mortgages aimed at first time home buyers with good credit allow you to borrow as much as 10% down. By shopping around, you may be able to secure a better deal on your loan, which will help you make the closing costs more affordable. A fixed rate mortgage comes with a set interest rate for the life of the loan; the mortgage amount does not change during this period.
National Association Mortgage Rates: If you are a first-time buyer or you are a senior citizen, there are certain national association mortgage rates available to you. Qualified as is property buyers can get a mortgage with interest rates as low as 4.5% or even less. However, you may not qualify for these mortgage rates if your credit is less than perfect, or if you have filed bankruptcy in the past few years. You must also be a member of the United States Department of Housing and Urban Development or the National Association of Realtors, in order to apply.
First-Time Home Buyer Programs: One of the most popular incentives offered by the federal government today is the Home Buyer Affordability Program (HAIP). Home buyers who are looking to purchase their first home can get special benefits such as a tax credit, loan insurance premium reduction, or down payment assistance. The home buyers can also enjoy a streamlined application process, reduced down payment, no income verification required, and the first-time home buyer programs can be used to finance the purchase of an existing property. Another home buyers' incentive program offered by the federal government is the first-time home buyer program that offers low down payments and no income verification. This incentive program is only available to borrowers who will purchase a new home or if they plan to refinance their current mortgage within a 30-year repayment term.
Real Estate Agent Referral Cost Assistance: Most real estate agents offer a discount for buyers who bring them referrals. Incentives may be given for referring a buyer, as well as other realty professionals such as a former housing or finance manager or an architect. To receive the real estate agent referral, the buyer must present a copy of their Fannie Mae or Freddie Mac mortgage document along with a list of their current lender and contact information. To receive this special pricing, present the original receipt for the loan and all supporting documentation and a current mortgage statement.
Mortgage Broker Referral Fee Rebate: This rebates a mortgage broker's standard commission on any home purchase transaction. To receive the rebate, the broker is required to refer potential clients to a buyer, either through his office, the buyer's agent or directly. For every referral the broker refers, he must charge the client an extra $50. For first-time home buyers, this could be a good incentive; however, it is advisable for clients to ask their real estate agent whether they can use a mortgage broker rebate before hiring one. You can get more enlightened on this topic by reading here: https://en.wikipedia.org/wiki/For_sale_by_owner.