Buy A South Windsor Home With A Low Down Payment, Or No Down payment At All

For many home buyers in South Windsor the question isn’t if they can afford to make the monthly payments on the home they would like to buy, but rather how they can save up for the down payment they will need.

It is a common misconception right now that you need a large down payment, possibly 20 percent or more to buy a home. That just isn’t the case. There are many programs available for home buyers in South Windsor which could allow them to purchase a home with little or no down payment. 

Sure a lender would love it if you made a large down payment on your new home, but if you don’t have a lot of money put down what are your options?

FHA – An FHA loan allows eligible borrowers to put down as little as 3.5 percent of the purchase price. For example on a $200,000 house that is just $7,000.  You don’t need to be a first time buyer to get an FHA loan.  Here in South Windsor the maximum FHA loan is $440,000, so this option works for most of the homes for sale in South Windsor. The 3.5 percent down payment can even come in the form of a gift! To learn more about FHA loans, check out this article about FHA loans.

CHFA – CHFA is available for first time buyers and can allow eligible buyers to finance up to 100 percent of the acquisition costs of their new home. Acquisition costs are the purchase price, down payment and closing costs, everything!  There are income limits and purchase price limits in South Windsor, but this can be a great option for eligible borrowers who would like to limit the amount of money they put down on their new home. Currently Jan. 14, 2013 the annual income limits are $105,240 for households of 1 or 2, and $122,780 for households of 3 or more. Also the sales price must be $406,154 or less.

VA – In general, active duty and honorably discharged service personnel are eligible for the VA program. In addition, home buyers who have spent at least 6 years in the Reserves or National Guard are eligible, as are spouses of service members killed in the line of duty. A VA loan allows an eligible Vet the opportunity to buy a home with zero down payment if the purchase price is $417,000 or less in South Windsor (figure current for Jan. 14, 2013)

Conventional – It is possible to get a conventional loan with a small down payment as well. As little as 3 percent is required for a down payment from a qualified borrower. There are no income limits, but the maximum loan amount is $417,000 (figure current Jan. 14, 2013)

If you have questions about the various mortgage options discussed in this article or about your specific situation and how you could buy a South Windsor home with little or no down payment, please call me Jon Sigler at 860-306-8029 NMLS#119288