Pat Starnes Snippets

One question I hear frequently from home buyers is how much down payment will they need to buy a home.

Down payments typically start at 3%, 3.5%, 5% and go to 20%, but in some instances, loans are available where NO down payment is required.

THREE OPTIONS FOR NO DOWN PAYMENT (Zip, Zero, Nada):

1. VA Loans ~ If the borrower is eligible for VA financing, you can borrow 100% of the sales price. 
2. USDA Rural Housing loans ~ offers 100% financing to qualified buyers based on credit approval, income limits, and qualifying location.
3. Mississippi Home Corporation ~ has Bond money available which is a Cash Advance feature to assist borrowers with down payment and closing costs. These loans are for either first time home buyers or people who have not owned a principal residence in the past three years. Income guidelines must be met. 

FHA:

This stands for Federal Housing Administration. The FHA program has been around since the 1930s. Backed by the Federal Government, these loans are designed to make home buying affordable for most Americans. The maximum loan amount in Rankin, Hinds, and Madison counties is $281,750 before MIP (Mortgage Insurance Premium). You must have a minimum credit score of 600 to qualify, and a 3.5% down payment.

CONVENTIONAL:

Conventional loans have a minimum down payment requirement between 3-5%, with a minimum credit score of 620. Mortgage insurance is required until your equity in the property is roughly 22%.

Other programs are available, but these are the most popular choices. Specialty loans are available for doctors, teachers, self-employed individuals with verifiable income, but I won't go into these here.

As you can see above, there are a few types of loans that require no down payment. Others require between 3-5%. If you have specific questions you'd like to ask on a personal basis about home buying or financing in the Jackson metro area, feel free to call me. I'm here to help.

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