Got the Down Payment Blues

The Alt 97, Flex 97 and Flex 100 programs backed by Fannie Mae and Freddie Mac are becoming increasingly popular. These programs require 3% and 0% respectively down payment and as little as $500 toward the closing costs. There are also FHA insured loans that only require 3% and are very flexible about the source of your 3% down payment.

Even with a changing real estate market 80/20 loans are still available with many lenders. Some lenders have changed their credit score requirements on these types of loans lately, but they are still available. An 80/20 loan, also referred to as a combo loan can help consumers buy a home when they have little to no money available for a down payment on a home. 80/20 loans or combo loans also will help you to be able to avoid PMI, Private Mortgage Insurance. These types of loans have been very popular over the last few years and will most likely continue to be a very widely used option for consumers who do not have a down payment.

 

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