One of the factors that hinder most people from getting a home is the down payment. Most lenders require at least 20% down payment to apply for a home loan. However, there are alternative mortgage options in cities like Kingsport that offer low down payment or nothing at all to qualified applicants.
Veterans Assistance Loan
The Department of Veterans Affairs (VA) ensures qualified veterans with mortgages that don’t require any down payment. This type of mortgage is available for active-duty army members, eligible veterans, and some members of the Reserves and the National Guard.
Private lenders offer VA mortgages, which the Department of Veterans Affairs approves and guarantees.
Navy Federal Credit Union also offers 100% financing to all its qualified applicants who are looking for buying a home. However, it’s only limited to some private employees of the U.S. Department of Defense and the military and their family members.
It’s almost the same with the VA loan, except that the Navy Federal’s funding fee is at least 1.75%.
Federal Housing Assistance (FHA) loans offer a minimum of at least 3.5% to qualified loan applications. It’s a great option for people with less than perfect credit history. In fact, people with a credit score as low as 500 can still qualify for a loan, as long as they’re still within the guidelines.
You’re still required to pay the FHA to ensure your mortgage at a lower cost. You may even get the money to pay your down payment as a form of gift or even as a loan.
These are just a few options that you may consider when applying for a loan. It’s always advisable to ask help from qualified mortgage experts to know more about your options. Keep in mind that getting a mortgage is a huge financial responsibility. You have to be financially prepared for it before you apply for one.