How to Compare Low Mortgage Rates With No Down Payments
Comparing low mortgage rates with no down payments involves finding an FHA loan, which only requires a 3 percent down payment, and weighing the benefits and drawbacks with a higher down payment and lower interest rate loan. Find low down payment programs available in many cities with advice from an experienced mortgage broker in this free video on personal finance.
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Hi, my name is Matt McKillen, I'm with Innovative Financial Group. I had a question posed today, how do you compare mortgage rates with no down payments available on programs? Well with the first time home buyers there are some very, very strong programs available. First off, the only true 100% financing that's out there right now is a VA loan. You have to be a veteran or an existing enlisted person. Secondly there are some new programs out by the government called the USDA loans or rural loans. Those are generally not available in larger metropolises or cities, they're more for counties and outside of the main cities, but there are some other ways to get into a home without money down and basically using an FHA loan which requires 3% down you can come in with a down payment assistance program. Now that can be bond money, it could be through the city or community where you live where they will actually gift you the down payment so in essence you're really financing 97% with the FHA loan but you're getting a gift of down payment for the 3%. So you really need to talk to your trusted mortgage lender or mortgage broker to advise you if you do qualify for one of these types of programs. I do work with a lot of first time home buyers and generally I try and get them in for as little out of pocket as possible. Thanks again for asking the question, my name is Matt McKillen with Innovative Financial Group.