You don’t need 10% or 20% down to get a home mortgage

By: Syd Johnson

If you can’t come up with a 10% down payment, home mortgage lenders are becoming savvy to your plight and have created many different solutions to help you get financing for your new home.

One of the top ways to get home mortgage financing is with a 5% down payment. This gives most customers a huge break on the amount of cash that they need to purchase a home. In the past, 5% down home mortgages were only available as through government funded loans like the Veterans Administration Loans.

Now, many lenders including banks, credit unions and mortgage companies will work with their customers to offer low down payment deals.

In addition, you can also do a zero down mortgage. In this case, the entire loan amount will be financed so your monthly payments will be higher than it would have been with a down payment. Also, your home mortgage lender might charge you a slightly higher interest for taking on the risk of approving a client without a down payment.

One of these methods will sure work for your so don’t hesitate to get preapproved for your home mortgage today.

Can you avoid private mortgage insurance with less than 20% down?

In the past, the only way to avoid paying monthly private mortgage insurance (PMI) premiums was to have put at lease 20% down on your home mortgage. TodayFind Article, many home mortgage lenders have created a variety of creative financing packages to help you get approved for your loan and avoid PMI even if you put down less than twenty percent.

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