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Buying a house is a big deal and can be quite complex. It’s extremely important when buying a house that you know exactly what to expect and when you should be completing certain tasks.

First and foremost, mortgage loans that require either a small or no down payment can save the typical home buyer thousands of dollars in out of pocket costs.

Next, we learn that there are 2 types of loans that allow a qualified borrower to purchase a home with absolutely no down payment. These loans are the VA mortgage and the USDA home loan. Both loans have certain restrictions that Luke explains in detail throughout the article.

The third main point of the article highlights the various loans that allow borrowers to pay only a 3% to 3.5% down payment. The most popular low-down payment program is the FHA loan. This type of mortgage has been used for years by people wishing to buy their first home. In recent years, Fannie Mae has introduced 2 loan programs that are similar to FHA. One is called the Conventional 97 program and the other is known as the HomeReady program. Both loans have their own specific criteria that Luke spells out in the article.

Along with the aforementioned loans that are available nationwide, there are also many states that have specific initiatives for their residents to aid in the home buying process. Some of these organizations provide education counseling to help people understand the necessary steps for buying a home. Other organizations have established grants that can be issued to qualified buyers to assist with out of pocket items such as down payments or closing costs.
One last tip: the FHA loan, the Conventional 97 loan and the HomeReady loan require a 3% to 3.5% down payment. BUT, that down payment money can be a gift. Each program has restrictions about the gift, which Luke mentions. By using a gift, potential home buyers are provided with a way to buy a home much sooner than they likely expected.