Homeownership may be closer than you think.
The down payment is the piece that stops most people before they start. Low down payment loans and down payment assistance programs exist, and Theresa can help you sort out which ones may actually fit your situation.
What most people believe, and what is often true
"I need twenty percent saved first."
Many buyers do the math on twenty percent, decide homeownership is a problem for later, and never ask the question.
It usually isn't required.
Several loan programs allow a much smaller down payment, and some have no down payment requirement for borrowers and properties that meet program guidelines. Down payment assistance can also help, but the details matter.
The loan underneath matters too
Assistance programs sit on top of a mortgage, so the loan itself is just as much of a decision.
FHA Loans
A common starting point for first-time buyers and anyone whose credit history is still being built.
→VA Loans
For eligible service members, veterans and surviving spouses, with no down payment requirement under program guidelines.
→USDA Loans
For qualifying properties in eligible rural and suburban areas, also with no down payment requirement under program guidelines.
→Conventional Loans
Low down payment conventional options exist and can sometimes compare well, depending on your credit and the property.
→Down Payment Assistance
State and federal programs with varying payback and forgivable options, some forgivable, some prorated, some repaid over time or when you sell.
Read the fine print before you sign
Down payment assistance is not uniform, and the differences show up in your monthly budget, not the brochure. The structure matters more than the dollar amount.
- Some programs accrue interest, so you eventually repay more than you received.
- Some loans paired with assistance carry a higher interest rate than comparable loans without it.
- Some require monthly payments and act as a second mortgage or lien on the property.
- Forgiveness periods vary widely, and refinancing or selling early can change what you owe.
Certain restrictions apply. Subject to approval of borrower and investor guideline requirements. Some exclusions may apply.
From "someday" to a plan
Starting a conversation costs you nothing, even if you are months away from shopping.
Tell Theresa your timeline
How long you plan to stay in the home shapes which assistance structure makes sense.
Review your numbers
Income, credit and savings, looked at together so you know where you stand.
Compare real options
Loan programs and any assistance laid side by side, fine print included.
Choose your path
Move forward when it fits, or use the time to get stronger and come back ready.
Low down payment questions
Do I need twenty percent down to buy a home?
No. Several loan programs allow a much smaller down payment, and VA and USDA loans have no down payment requirement for borrowers and properties that meet program guidelines. Theresa can walk you through which of these you may fit.
Is down payment assistance free money?
Sometimes, and sometimes not. Some programs are fully forgivable if you stay in the home and do not refinance for a specified number of years. Others are prorated, accrue interest, or require monthly payments as a second mortgage or lien. Read any offering carefully.
What if I sell or refinance before the forgiveness period ends?
It depends on the program's terms. Some prorate what you owe based on how long you stayed; others require full repayment. That is why Theresa asks how long you plan to stay before recommending an assistance program.
Can down payment assistance be combined with an FHA loan?
Many assistance programs are designed to pair with FHA and other loan types, though eligibility and pairing rules vary by program. All financing is subject to approval of borrower and investor guideline requirements.
Should I talk to Theresa if I'm not ready yet?
Yes. Plenty of people talk to Theresa months before they shop and use that time to strengthen their credit and savings.
Ask the Huntress
Tell Theresa what you have saved and what you are hoping for. She will help you understand which low down payment options may be available for your situation, and what the fine print really means.
(913) 705-0049