Saving enough money for a down payment can be hard and meeting lender underwriting requirements can be challenging. Sometimes this prevents people from buying a home.
However, many mortgage lenders offer low-down-payment, fixed-rate mortgages, and mortgages with more flexible underwriting to help people with these financial circumstances. Be sure to shop around and contact various lenders for all the specifics related to loans with these types of options.
Some mortgages need as little as 0% down payment (excluding closing costs). Others raise the maximum debt-to-income ratio, allowing you to qualify for a mortgage payment that is a larger percentage of your monthly income.
Ask your lender about fixed-rate mortgages with low-down-payment features like:
- Small down payments (0% to 5%)
- Additional sources of money for the down payment, like a federal, state or local government agency, nonprofit organization, employers, private foundation, or family member
- Expanded debt-to-income ratios up to 42%
- Options for people with limited incomes in high-cost areas
- Homeownership education programs
- Lower mortgage insurance costs
- Seller contributions to your closing costs
- Options for people who buy in designated areas
