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How To Buy A Home With A Small Down Payment.

How to buy a home with a small down payment home loan.

Getting on the trail that leads you from renting to owning a Maine home. It used to be no twenty five percent of the home priced saved up, then keep renting until you do hit that savings point. Heck even twenty percent down is a hard task for most home buyers today. Even though way less secondary mortgage market lending hassles if you can plop that much down to buy a home. maine lake home view photo

So living the dream of home ownership and to quit renting.

Here's the quandry. Buying a home when there is not a mountain of money saved up and in the bank, tucked away in the mattress.

For a down payment like back in the days of the twenty five percent squirreled away first routine before you were ready to consider buying a home.

Today, it helps to be a veteran with GI benefits. To have the option to use the no down payment mortgage loan method.

If the home checks out with flying colors from the appraisal value and condition standards. This VA government backed home loan is proved by the private sector banks and mortgage company lenders.

The smaller down or no money needed upfront to buy home loans are the hardest on the property being mortgaged. The paper for the mortgage loan gets sold on the secondary market and investments have strict standards to apply to whatever is bought to sell off.

In our rural area, where the is more wildlife than people, where money does not grow on trees and wages are lower like the house prices, RD / FmHA loans are big.

But so are cash price sales because the price for the home is not nose bleed high like urban areas. The USDA loans are ideal for the home buyer with decent credit, healthy debt ratios and solid employment. But who just lacks a down payment or has very little money to put down to secure a home mortgage loan approval. crowded renting home buying photo

All of Maine except for a handful of cities is rural small town. So USDA loans are a perfect fit. 80% of the homes in my small town of Houlton Maine were made with a dollar down financing from what was called the Farmers Home Administration.

Department of Agriculture home loans have lending limits that change depending which of the sixteen counties the house you want to buy is located. One of the requirements is the home buyer can not own another house. Most of the USDA home loans are in towns under 20,000 population which is an easy limbo pole to squeeze under for the vast majority of small town Maine dwellers.

No mortgage insurance on the USDA home loans but you do get charged a one percent fee upfront which can be part of the house loan.

Learn more from the USDA beehive for information to see how you measure up for use of this program to buy a home with no down payment. The USDA home loan program is designed for low or moderate income mortgage seekers. More on the USDA loan from Uncle Sam's website.

FHA home loans through HUD, lending from the only government agency operating completely from its own self-generated income. FHA home loans cost the taxpayers nothing. They do require mortgage insurance paid for by the homeowners and used to operate the program independently. FHA provides a huge economic stimulation to our country. With home and community development project lending that trickle down through the local area. By creating much needed jobs, fueling building suppliers, supporting the tax base, our local schools, and by generating other forms of revenue.mooers realty logo

What about rent to own houses in Maine? Or buying Maine land with owner financing is something happening in many of our real estate sales. But how about owner financing a Maine home? It happens but not as much because the home seller needs to replace the house. And to pay off an existing loan on the Mainer home. That the mortgage language makes clear as bell that this home loan mortgage is not transferable, not assumable. Or an acceleration clause kicks into gear if you do try to pull in a new buyer piggy backing on an old existing Maine home loan.

So the myth you need to pile up the cash you stash before being in a position to buy a home is just not true.

Lots of options out there as long as you check out as a worthwhile risk for mortgage lending. Love to talk about buying a home, discussing the many exciting bank lending options out there for the best mortgage available for you! Buying a Maine home with a low or no down payment mortgage loan. Getting out of the rent rut and into your own house with a mortgage that only requires a small down payment. Let's talk about the programs! Here to help in the process of buying or selling a home in Maine, or any type of property.

I'm Maine REALTOR Andrew Mooers, ME Broker

 

info@mooersrealty.com | 207.532.6573

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Comment balloon 5 commentsAndrew Mooers | 207.532.6573 • January 13 2018 07:31PM

Comments

Great information Andrew Mooers  so many buyers think they need 20% down I never realized it until I talked to uneducated buyers on the phone   .Great post

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) almost 3 years ago

Thanks Hannah Williams ...  Back in the days with 25% down payment home loans were the only lending flavor, you went without and sacrificed much to make it happen. Less foreclosures too because you fought harder to hang on and not lose the house. The local banker made a character loan, knew your Dad and Mom, their parents and summed up how is this collateral looks with a personal walk through... and it was one stop local lending shopping.

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) almost 3 years ago

Few first timers begin their home ownership journey with 20 per cent down and thankfully there are a variety of programs that allow for far less to enable them to have their share of the American Dream.

Posted by Sally K. & David L. Hanson, WI Real Estate Agents - Luxury - Divorce (EXP Realty 414-525-0563) almost 3 years ago

Great information, thanks for sharing this. 

Posted by Golden1 Agents almost 3 years ago

Thank you Sally K. & David L. Hanson , Golden1 Agents for stopping in! It's easier than ever down payment wise to buy if your buyer's credit health is in the pink and the property standards are high.

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) almost 3 years ago

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