Low Down Payments Revive The American Dream
Don't let the myth of a super high downpayment keep you from buying a new home
Many Americans have had their credit bruised by these trying economic times. However, those that want to buy into The American Dream with a mortgage and a home of their own can see light at the end of the tunnel.
The Federal Housing Administration (FHA) has taken steps to insure loans with small down payments. In fact, the new minimum requirement of 3.5 percent is allowing people with imperfect credit histories to get involved with real estate and find the home of their dreams.
Bottom line…the government is helping people who might not otherwise get the chance to apply for a mortgage by lowering the amount they need to get started.
What you Need to Qualify
You can increase your chances of getting one of these FHA loans when you know what you need to do to qualify. FHA loans are open to everyone who meets the minimum eligibility requirements. All borrowers must place at least a 3.5% down payment. The amount is determined by the appraised value of the property or the sale price, which ever is less.
While there are differences between these FHA loans and more traditional loans, there are some factors that are the same for every type of mortgage. Having a decent credit score is critical. For an FHA loan, applicants need a credit score of 580 or higher to get the preferred 3.5% down payment option. Don’t have numbers that high? You can still apply if your credit score is between 500 and 579, but you’ll need a 10% down payment under those circumstances.
Compare Lenders and Save
There’s more good news for homeowners looking for a new mortgage. Innovation and technology are helping you with your real estate purchase as well. You can get help from the comfort of your own home. There are free services on the internet that allow you to find and compare lenders. LendingTree, one of the countries most respected lending finder service has a bunch of FHA lenders in it's network. You can see side by side comparisons from FHA lenders matched up for you.
A recent study suggests that by comparing five lenders, the average shopper saves $24,000 dollars. Sorting through three lenders saves consumers $16,000 dollars. There’s no cost or commitment and you get a personalized quote in minutes from their dynamic network of lenders. Get up to five mortgage offers from competing lenders from LendingTree on a low down payment loan from an FHA lender.