Many can still remember those years when putting 20% down was the rule of the market. There is nothing wrong with a substantial down payment- it helps make the mortgage more affordable. As they say, only change remains constant. The mortgage market has changed a lot over the years such that the 20% rule no longer applies. Buyers in Ogden do not need this kind of down payment to own a home. Many lenders have buyer friendly options that allow for low down payment, sometimes even no down payment at all. While most of these arrangements favor first time buyers, even those planning for a second or third home can benefit. So, what alternatives are we talking about here?
Private Mortgage Insurance
If you are paying down less than 20%, you are going to need some form of mortgage insurance. This is important from the lender’s perspective in case you default payment for whatever reason. Coverage is available in different forms, with the conventional one being called private mortgage insurance (PMI). Further, it is segmented into BPMI and LPMI for borrower-paid and lender-paid programs respectively. As long as qualify, you can make a 3% down payment to get a mortgage with PMI. Some naysayers talk about the stringent requirements but remember that you can opt out of PMI at some point.
Navy Federal Credit Union
United States military people together with their families can take advantage of the products available at Navy Federal. Some mortgage options to consider are FHA Loans mortgage, Adjustable-Rate mortgage, Interest Only mortgage and Military Choice mortgage. If you have a feeling this mortgage option might suit you, give it closer consideration.Credit unions tend to offer friendlier deals than conventional banks do. Looking at the funding fee, Navy Federal looks more attractive than even a Veterans Affairs (VA) loan.
Department of Veterans Affairs (VA) Mortgage
The Department of Veterans Affairs (VA) in Ogden offers mortgage loans to members who qualify as veterans and service members among others. No down payment is required for this mortgage. Unlike for civilian homebuyers, VA loans do not involve private mortgage insurance. Instead, the loan comes with a funding fee of up to 3.3%. The funding fee can be either 2.15% or 2.4% depending on whether you are in regular military or in national guard/ reserves.
Federal Housing Administration (FHA) Mortgage
This is an ideal mortgage for the low-income borrower with low credit score and limited down payment. Many who qualify for this home loan may not do so with conventional lenders. Despite this friendliness, the user has to meet several requirements including 3.5% down payment, home appraisal fee, closing costs and up-front insurance premium. If your credit score is a bit unattractive, this is the mortgage to consider.
The United States Department of Agriculture (USDA)
Finally, borrowers in rural areas with nothing for a down payment can go for the USDA mortgage. Eligibility is based largely on the location of the home, but do not rule yourself out even if you are not a rancher or farmer.Your income is the only other factor that the lender will consider.
As homes become more valuable in Ogden, there has never been a better time to be a homeowner. Let not your credit history or income ensnare you. The number of mortgages designed for people like you is increasing every day. Compile the options, compare rates and pick the most suitable option.
