What is the Lowest Down Payment for a Home Loan? 2
What is the Lowest Down Payment for a Home Loan?
I have seen this question asked a lot lately and only met with a quick answer……..go FHA 3.5% down. Yes, this is a correct answer but there are several more options that many people either don’t know about or don’t care to explore with the borrowers. Today I give you the OTHER programs.
1. VA loan 102% LTV (loan-to-value)
This is a Veteran Affairs loan for, you guessed it, our military. If you are currently in the military or a veteran well, they have a pretty nice loan for you. For more information on this just ask me or visit VA’s website.
2. USDA loan 102% LTV
No you don’t have to be on a farm and no this is not a loan so you can buy some cattle. The USDA has financing available for homes that are located in RURAL areas. Thats right, the catch is the property must be classified being in a rural area by an appraiser in order to get financing. Wonderful program for those who fit that box!
3. $100 Down FHA REO
Not to many people know about this program but that is no type-o…….only $100 down and you can get a house! You might ask, “What is the catch, their is aways a catch?” The catch on this program is that you can only by FHA real estate owned properties that qualify for the $100 down. So instead of going out and finding a property you want, you only get to pick from FHA’s list of properties. Hey, its only $100 down and you might find the property you wanted on the list, so give it a shot.
4. 3% down, No Appraisal, No Mortgage insurance Fannie Mae REO.
Same concept as the FHA REO’s but you are looking off Fannie Mae’s REO list of properties and looking to see which ones qualify. Again, this is not a bad option if you want to take advantage of the tax credit for home buyers and not worrying about an appraisal and mortgage insurance.
5. 3.5% Down, FHA regular loan
Ah yes, and now back to that answer for the question of , “What is the lowest down payment for a home loan?” Well, this is the product everyone defaults to and is still a good option.
I hope this helps, and let me know if you have any other questions. 
do u have to be at a certain credit score for this loan because i want to purchase a house but been turn down because of credit score of 586.
Good question Valerie,
Right now, lenders usually are requiring at least a 620 credit score with some going down to 580 but are hard to find. A helpfull tool to bring up your credit scores would be going to FTC.gov or myfico.com and searching for credit scores. I would also be more then happy to send you some more information on this as well. Thanks again for your quesiton