Do You Qualify for a Low Down Payment Government Mortgage?

For those with limited funds, loan programs are available that do not require a 20% down payment. These programs include FHA,  VA, USDA, CHFA, and HomeReady loans.  Check with your mortgage professional to see if you qualify.

VA Loans: VA Loans are provided to veterans, active-duty service members, and eligible surviving spouses. With a VA loan, you can purchase a home with zero down payment, though there are typically fees associated with these loans.

FHA Loans: FHA loans are a popular mortgage option for first-time homebuyers and those with low incomes. With an FHA loan, you can buy a home with as little as 3.5% down.  It can be paid upfront or added to the monthly mortgage payments; a mortgage insurance premium will be added to the loan amount.

USDA Loans: USDA loans are also a zero-down payment option for qualified buyers in qualifying rural areas. The income requirements for a USDA loan are lower than other loan programs so they can be a good option for those with limited funds.

CHFA Loans: This loan program offers a 3% down payment or up to 5% of the purchase price in closing cost assistance. Offered to first-time home buyers in Connecticut.

HomeReady Loans. Offered by Fannie Mae to help low- to moderate-income borrowers.  With as little as 3% down, it can be used to purchase a primary residence

Buying a home with less than a 20% down payment is possible.  It is essential to understand the different loan programs and their requirements. Not all loans are the same, and the amount of down payment required may depend on the type of loan.  Understanding how much you need to budget for closing costs is essential.  Closing costs can vary depending on your chosen loan program.