Flexible Mortgage Programs

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So you don’t have the down payment? Well there are mortgage programs available for you. Lenders today offer a variety of flexible mortgage programs. The most basic is the conventional mortgage, which has no security guarantees other than the value of the property. Such loans typically demand either a 20 percent down payment or a lower amount combined with private mortgage insurance (PMI). Federal Housing Administration (FHA) loans and other programs guaranteed by the government do not require such insurance which is offered by independent insurance companies to qualified borrowers with down payments of less than 20 percent of a purchase price. The cost of such insurance varies by lender and loan type but generally costs about seven-tenths of 1 percent of the total loan amount annually.

There are many other nonconventional options available to home buyers right now. One of the country’s largest lenders for example offers the following programs with down payments as low as 3 percent:

• No Money Down Plus Program – Lets all qualified buyers finance the entire purchase price plus up to 3 percent of the closing costs. No income limits.
• 3 Percent Solution Program – Gives all qualified buyers the opportunity of putting only 3 percent down on a primary residence and taking advantage of flexible qualifying guidelines. No income limits.
• Easy-to-Own 3 Percent Down Loan – Lets qualified low- to moderate-income borrowers put only 3 percent down on a primary residence and taking advantage of flexible qualifying guidelines. Limited to borrowers who fall within HUD median-income levels.
• Easy-to-Own 5 Percent Down Loan with 3/2 Option – Allows a low- to moderate-income buyers to use their own funds for 3 percent of the down payment and get the remaining 2 percent as a gift, grant or from an approved Down Payment Assistance Program. Limited to borrowers who fall within Department of housing and Urban Development (HUD) median-income levels.
• FHA Mortgage – Allows all qualified buyers to take advantage of a low down payment with flexible qualifying guidelines, with loan limits set by area.

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