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Low (Or No) Down Payment Home Loans

Low (Or No) Down Payment Home Loans

Buying a home is typically the largest purchase most people make in their lives, so many need to rely on home loans to close the deal. Saving 20% may not sound like a lot, but it can take years to accomplished on such a big ticket item. Luckily, there are other options out there that make the old 20% down payment on a home a thing of the past.

2024 Assistance Programs for Home Loans

Government-backed loans, like the Federal Housing Assistance (FHA) and Veteran’s Assistance (VA), have traditionally offered low-to-no down payment options but not everyone qualifies to take advantage of these loans. Today, many mortgage lenders are aware of the struggles home buyers are having with the conventional down payment requirements. Stephanie Janiga sat down with Alec Perlstein from Vet Loans Home Mortgage Service to learn more about the unique programs they are offering home buyers. 

$5000 Closing Cost Assistance

One of the most popular low down payment options for home buyers in the Macomb, Oakland, and Wayne county areas offer a $5000 closing cost assistance. That particular program also includes another $500 towards an appraisal and home warranty. What’s great about that loan is you don’t have to be a first time home buyer and there is no income cap for the buyer to qualify. 

1% Down Payment Program

Unlike the above program, the 1% Down Payment plan does have income limits on the eligible qualifiers but offers its own unique assistance to home buyers. This program is backed by a grant to provide 2% of the down payment to accompany the buyer’s 1% to in total provide a 3% down payment to the lender. The best part is that the grant funds do not need to be paid back, so it’s a win-win for both the buyers and the sellers.

USDA Rural Home Loans

In an effort to encourage individuals to develop rural areas, the government supports a 0% down rural home loan. These mortgages do come with income and loan amount restrictions, but both are relatively high for the Eastern Michigan area. 

USDA Loans are also nice because you can increase the amount of the loan to include the closing costs as well as the price of the home. That way you can may payments on those fees as well instead of having to save up to cover them right away.

If you’re interested in hearing more about these low or no down payment options, reach out to Alec at Vet Loans Home Mortgage Service at (248) 277-6060.

Once you have your loan preapproval, contact us to start looking for that perfect new home!

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