Is It Possible To Buy A Home With One Percent Down?
Are you interested in buying a home, but worried that you might not be able to afford it because of the down payment that is required? Fortunately, there may be certain financing options available to borrowers that require a lower down payment amount, making home ownership a possibility for buyers concerned about the cost of a down payment. If you are located near the areas of Stamford, Norwalk, or Fairfield, Connecticut, and interested in learning more about your home financing options, Prosper First Funding Corporation is here to help. Continue reading to learn more about purchasing a property with a one percent down payment.
Coming Up With Enough Funding For The Down Payment On A Home
When you buy a home, the down payment is a significant factor of the transaction. A down payment is essentially a percentage of the overall cost of the property and must be paid when you close on the home up front. The amount you are able to afford for your down payment will directly affect the amount you will have to pay each month for your mortgage payment, your interest rate, and whether or not you will have to pay for private mortgage insurance, (PMI). Essentially, the higher down payment you are able to make, the lower your mortgage payment will be. Additionally, you will not be required to pay for PMI if you make a twenty percent down payment, which could significantly lower your expenses.
Purchasing A Property With One Percent Down
Even if you are unable to make a higher down payment amount, you can still qualify for a mortgage with as low as one percent down in certain situations. Mortgages that offer a one percent down are mainly intended for borrowers that are capable of making monthly mortgage payments, but perhaps lack sufficient savings to make a considerable down payment. This type of loan could benefit those borrowers that have seen their savings negatively impacted by the current economic market, but would still be better suited with paying a mortgage rather than renting. In order to qualify for a mortgage with a one percent down payment, a borrower will need to be able to verify that they have a solid income, a good credit score (typically 680 or higher), and a low debt-to-income ratio. With most programs, if a borrower can come up with one percent down, a potential lender could help provide a grant for another portion of the down payment that would not have to be repaid.
If you are interested in purchasing a home in Stamford, Norwalk, or Fairfield, Connecticut, and want to learn more about your financing options, contact Prosper First Funding Corporation today for a consultation.