Following are various down payments that you can consider for your mortgage and can discuss with your mortgage consultant.
No Down Payment Options
USDA
- Zero Down Payment (100% Financing)
- No Monthly Mortgage Insurance
- 2% Guarantee Fee Financed
- Income Limits
- Property must be located in a USDA designated area
- Competitive Rates
- Seller can pay closing costs
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VA – Veterans (Active Duty and Non-Active Duty) and Reservists
- Zero Down Payment
- No Income Limits
- Competitive Interest Rates
- Loan Amount up to $417,000
- No Monthly Mortgage Insurance
- VA Funding Fee Financed
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Low Down Payment Options
FHA
- 5% Down Payment
- Gift Funds Allowed (from a relative)
- Competitive Interest Rate (similar to conventional interest rates)
- Seller can pay closing costs (up to 6%)
- Appraisal, processing and closing similar to a conventional loan
- 620 Minimum Credit Score
- No Income Limits
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North Carolina Housing Finance Agency
- 5% Down Payment
- Below Market Interest Rates
- 1st Time Homebuyer Program
- Reduced Mortgage Insurance Premium
- Income and Sales Price Limits
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5% Down (Conventional)
- 5% Down Payment from borrower’s own funds
- No Income or Sales Price Limits
- Seller can pay up to 3% in closing costs
- No Geographical Restrictions
- Loan Amount up to $417,000
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Low Mortgage Payment Options
Fully Amortizing ARMs
- Provides lower monthly payment at the beginning of the loan
- Initial fixed interest rate period (3, 5, 7, or 10 years)
- Interest rate and payment adjust annually after fixed period
- Interest rate adjustments are capped annually and for the life of the loan
- Down payments as little as 5%
- Great option for borrowers planning to live in home for just a few years
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Interest Only
Temporary Buydown
- Monthly payment is interest only which provides a lower monthly payment option
- Interest Only ARM options have an upfront period where the interest rate is fixed and interest rate adjustment caps annually and for the life of the loan
- Interest Only fixed rate option available
- Great option for borrowers earning commission income or periodic bonuses who want a low monthly payment with the flexibility of paying larger amounts of principal periodically
- Up to three years with a below market interest rate
- Lower initial payments for first few years
- After the buydown period, the interest rate is fixed and principal and interest payment won’t change
- Buydown cost can be paid by the seller
- Great option for borrowers whose income will be increasing over the first couple of years of the mortgage