Low Down Payment Program
Provides borrowers with the opportunity to purchase a home using less than 5% down payment. Most of these programs also allow for down payment and/or closing cost assistance programs to be used in conjunction with the loan.
Indications - this program is a good choice for:
- Provides borrowers with limited savings the opportunity to accomplish their dream of owning a home.
- Provides an option for borrowers to conserve their savings for financial stability or to use their savings for other financial goals.
What are the benefits?
- Income & Loan Limits: Some low-down payments products have limits on the amount of income that is permissible.
- Qualifying and Credit Standards: Products have credit and qualifying standards that must be met.
- Occupancy: Low downpayment programs are typically only available for Primary Residence loans.
Typical Disqualifying Considerations?
- Allow borrowers to purchase home months or years earlier than saving for a 20% down payment.
- The lower downpayment allows the borrower to free up funds for closing costs or other home purchase expenses.
Alternative Programs
