If you’re thinking of buying a home in Las Vegas but are worried that you won’t be able to come up with the down payment, Blackmon Home Loans of Las Vegas may be able to help with down payment assistance. There are many lower down payment home loan options for Southern Nevada home buyers. Please keep reading to learn more about these financial products and how to qualify for them.
- VA
- FHA
- USDA
- Fannie Mae HomeReady
- Freddie Mac Home Possible
Veterans May Wish To Consider A VA Loan
For many veterans, a VA plan is the best way to achieve the dream of homeownership. However, you’ll need to meet a few basic requirements to qualify. In addition to having a good credit history and proof of steady income, you’ll have to meet specific service-related criteria, as explained on our VA loan page. That said, these mortgages offer several advantages.
- Low Interest Rates
- No Down Payment Requirements
- No PMI
- Relaxed Credit Requirements
Do VA Loans Have Any Disadvantages?
There are a few drawbacks to VA mortgages. First, the home you’re buying must be your primary residence and will need to meet some minimum standards set by the Department Of Veteran Affairs. You’ll have to pay a funding fee that ranges from 1.25% to 3.3% of the total amount, which makes financing a bit more expensive. Finally, because the government backs VA funding, there is sometimes a long process involved in getting approved for financing. However, many people find that the benefits far outweigh the disadvantages.
FHA Mortgages Suit Many First-Time Homebuyers
There are a few advantages to taking out a government-backed FHA loan. For one, FHA plans have more relaxed credit requirements than other types of mortgages, making them an ideal option for borrowers with less-than-perfect credit. In addition, FHA loans come with low down payment options, allowing borrowers to put as little as 3.5% down on their new home. Lastly, FHA options are available at fixed and adjustable rates, allowing borrowers to choose the type that best fits their needs.
The Cons Of FHA Loans
While you don’t need perfect credit to qualify for an FHA product, you must have a good credit history and a steady income. There are a few drawbacks that you should also consider.
- You’ll Need To Pay PMI
- Not All Properties Qualify, Especially Fixer-Uppers
- Condos May Not Qualify
- Some Sellers May Hesitate To Choose An FHA Applicant
- You Are Limited to 15 Or 30-Year Terms
- Zero-Down USDA Home Loans
These mortgages are available to homebuyers in eligible rural and suburban areas. The program provides homebuyers with up to 100% financing, meaning they can buy a home with no money down. Additionally, USDA home loans do not require private mortgage insurance (PMI), making them an even more affordable option for homebuyers. Eligible homebuyers can obtain a USDA home loan through any participating lender, such as a bank or credit union.
Fannie Mae & Freddie Mac Conventional Loans
Although Fannie Mae and Freddie Mac are government-sponsored enterprises created to stabilize the housing market by increasing access to mortgage financing, the government does not back loans issued via these entities. Instead, the loans are privately backed. Fannie Mae HomeReady Loans and Freddie Mac Home Possible mortgages help low-and moderate-income borrowers purchase or refinance a home. So let’s look at each of these in turn.
Fannie Mae HomeReady Loans
These lending products offer competitive interest rates, low down payment requirements, and special assistance for borrowers who may not have a strong credit history. You can also use your HomeReady loan to finance primary residences and investment properties. As a result, they can be an ideal option for first-time homebuyers or those looking to build their investment portfolio.
Freddie Mac’s Home Possible Mortgage
This program offers several benefits, including down payment assistance, flexible underwriting requirements, and expanded eligibility criteria. Perhaps most importantly, Home Possible mortgages can help borrowers who might not otherwise qualify for a conventional loan. As a result, the program can help more people achieve the dream of homeownership.
Are You Shopping For An Affordable Home Loan In Las Vegas?
Blackmon Home Loans is proud to offer some of the most competitive and affordable low down payment mortgage products in Las Vegas, NV. Our lending specialists are here to help you navigate the complex process of buying a new home. If you’re ready to learn more about our services or would like to schedule an appointment, please give us a call today!