It is a terrific time to buy a home. Home sales are strong while home supply is dropping. Home prices are rising and are over 4% higher this year than last. Today’s market may look like a bargain compared with next year.
Furthermore, mortgage rates are down.
Even with all of that being said, buyers are somewhat tentative, especially younger buyers. Generally, home buyers have many concerns including affordable monthly payments, but many buyers are mostly concerned with having to put 20% down.
Fortunately, a number of low to no down payment mortgages are available. The following loan programs require low down payments to no money down payments with a few qualifications:
FHA loan – 3.5% down payment with mortgage insurance, wide credit range
VA Loan – 100% financing but must be a veteran, no mortgage insurance, wide credit range
USDA Loan – 100% financing but geographically restricted with mortgage insurance, wide credit range
HomeReady™ Loan – 3% down payment with mortgage insurance, medium credit range
Conventional 97 Loan – 3% down payment with mortgage insurance, medium credit range
New Program – Conventional Loan with Equity Kicker – 1% down payment with 2% equity gift and no mortgage insurance, medium credit range
The New 1% Down Program
The recently introduced 1% down program only requires a 1% down payment…and the lender will contribute another 2% towards the down payment. You end up with a 3% down payment. Here are the program features:
• You put down 1%
• Lender contributes 2%
• You now have 3% equity at closing
• Low rates
• Close in less than 30 days
• Available with no monthly Mortgage Insurance
This short video (link below) highlights the 1% down program.
Each of these programs has advantages and disadvantages. Most importantly, potential buyers should know that the 20% down payment is not a requirement to buy a home and that numerous options exist.

Chris Rosner
chrisrosner@cox.net
Cell: 480-227-6944
www.renlendinggroup.com
NMLS: 180251 & 181263
AZ License 0909337