The “need” for big down payments is a myth in today’s lending environment. Truth is, programs offered by three federal agencies are helping borrowers buy a home with little or no down payment.
Wondering where to look for a program like that? Maybe this will help:
Federal Housing Administration: With a minimum down payment of 3.5%, FHA-insured loans are the low-down option that’s available to the most borrowers.
Department of Agriculture. The biggest myth about the department’s Rural Development mortgage guarantee program is that it’s designed only for people who are buying farm land. But it’s simply not true. To qualify for a low-downpayment home loan backed by the Agriculture Department, you must purchase a home in a “rural” area, but you may be surprised at the number of areas that fit the definition. (Many do.)
Veterans Affairs. Formerly the Veterans Administration, this agency guarantees no-down payment mortgages for qualified veterans, active duty personnel, reservists/National Guard members and some surviving spouses.