No matter what type of property you need, a low-downpayment mortgage is a great option. Allowing you to enter into home ownership with less initial funding, this program also allows for the purchase many different properties.
Top 6 Types of Homes that Can be Purchased with Our Low-Downpayment Mortgage Program
1. Moderate Single-Family Homes
Probably the most popular choice for this program, a single-family home is simply a property with space for one family; there are no separate units or independent living quarters. Basically, a typical, everyday house. Using our low-downpayment program, you can purchase the single-family home you have always wanted, giving your life the financial stability that comes with homeownership. While you can likely get more financing to purchase a larger home, moderate single-family homes are a great choice, especially if you are a young professional who wants to create a solid financial base with lower monthly costs.
2. Large Luxury Properties
This program may allow for moderately-priced homes, but it can also help you purchase a high-end luxury property. With this program, you can secure financing up to $2 million with only a 5% down payment, which means a qualified buyer can purchase a property with a total price as high a $2,105,263. To secure a purchase price of that amount, many programs would require downpayments of 10 or even 20%.
And if you can increase your downpayment, you can also significantly increase your buying power. If you bump the downpayment from 5% to 10%, you can secure up to $3 million in financing. Imagine the stunning luxury home you could purchase with that type of loan.
3. First Homes
With this option, you can purchase your first home and still get the outstanding financing you deserve. Many programs, especially jumbo-loan programs such as this, have limitations that make it extremely difficult, if not impossible, for first-time buyers to secure financing. Many first-time buyers will be limited to 80% loan-to-value ratios when using a jumbo loan for their purchase, but this program will not have any restrictions based on whether or not this is your first home, as long as your proposed housing costs are not excessive compared to your current housing costs.
To qualify, the proposed housing cost can’t be more than 250% of your current housing costs. To calculate, take your current housing cost and multiply by 2.5: this will your limit if you are a first-time homebuyer using this program.
For example, if you have a current total housing cost of $3,000, your limit would be $7,500. ($3,000 x 2.5 = $7,500.) So if you would have, for example, a new cost of $5,000, you would be eligible for the financing. (Remember that it’s total costs including taxes and utilities, not just the mortgage payment.) This financing would be available to you with a downpayment of only 5%!
4. Multiunit Properties
Owning rental property is a steady and reliable way to increase your financial status and longterm security, and many property investors turn to multiunit properties, which can be purchased using this low-downpayment mortgage program. With a multiunit property, you are able to experience numerous benefits, including more rental checks during the month and a distribution of vacancy risk across multiple residences. For example, if you have a single-family rental property, if one family moves out, there is no rent coming from the property. However, if you have a four-unit rental facility, and one family moves out, you are still earning 75% of the potential from that property.
There is one stipulation to using this program for a multiunit property. In order to secure the financing, you will have to live in the property for a certain period. Talk with our staff about the occupancy requirements to see if this option would be right for you.
5. Second Home
Perhaps you’re at a stage in life when you’re successful in your career, with a steady income and a job that is secure for years. The time seems right to finally reward yourself with a second home. But despite having a strong income and outstanding credit, you can’t secure financing for the purchase of a luxury vacation property. Fortunately, this low-downpayment option allows for the purchase of a second home, and you can still enjoy the benefits of only a 5% down payment.
Buying a second home, either as a property in a city you frequent or as a vacation home in a resort area, is a great way to expand your real estate portfolio. Not only are you purchasing something you can enjoy, you will be investing in something that steadily gains value, further increasing your financial stability.
6. Condo (Warrantable and Non-Warrantable) and Planned Unit Developments
By purchasing a condo, you get an affordable and convenient property that is easy to own and easy to maintain. You don’t have the burden of outdoor upkeep like a single-family home, and many condos come with amenities such as workout centers or recreation areas, adding another benefit to owning these properties.
With this low-downpayment program, you can purchase warrantable and non-warrantable condos. “Warrantable” simply means that loans on the condo could be purchased on the secondary market by Fannie Mae; all you really need to know is that if a condo is warrantable, it is far more eligible for lending than non-warrantable. While many programs avoid non-warrantable condos, this program allows you to purchase virtually any condo on the market, as long as certain conditions are met.
Planned unit developments, also called “PUDs” function in a similar way as condos, but they set up more like townhouses or even single-family homes. These properties are more spacious, but offer many of the same conveniences. Like condos, they are also eligible for financing through this property.
Use Our Low-Downpayment Mortgage Program for Your Next Purchase
Whether you need a moderate first-time home or a luxury vacation property, our low-downpayment loan can make it happen for you. Contact our staff today to learn more about the benefits for this outstanding loan program.
“Chad and his group made the mortgage approval process smooth and understandable. Multiple updates and explanations during the process kept me informed of progress. Chad also provided great advice on other home services, in particular an insurance company that saved me thousands of dollars a year on home and auto insurance.”
I was referred to Chad by my Realtor for a purchase of a new house. The experience with Chad and the team (I mainly worked with Juliann) was nothing short of outstanding. From start to finish there were always quick to respond and when needed, notify me of any new documentation that was required. There were very helpful explaining to me the pros and cons of different financing options as well as some other loan related issues, such as termite clearance outside the purchase contact and septic tank certification process. Overall, very knowledgeable and processional team. Loan preapproval was done in a single day and loan documents were ready for signing in 21 days, which was 9 days ahead of schedule. That never happened to me before.
Excellent customer service – highly recommended!. I was referred to Chad by one of my friend. During our initial meeting, Chad walked me through the lending process and provided multiple ideas to start the home search. He got me pre-approved in couple of days. After looking for months, we finally liked a house but it was over our budget. He came up with an intelligent financing strategy and provided an excellent rate that let us purchase our new house. Chad and his team are patient, professional and always available – literally 7 days a week, 24×7. I can’t remember the last company I worked with that returned calls and emails in such a timely manner! I will happily recommend him to others.”