Buy a Home with Little to No Money Down!
Are you currently renting but you really want to own a house? Do you want to buy a house but your worried about not having the money for the down payment saved? If you have answered yes to either of these than you really want to read this article. This is something I hear all the time. That people are saving money for a down payment or the must wait for their tax return, so they have the down payment.
There are a lot of options out there to where you can buy a house with very little to no money down! Yes, you heard it correct. Here in Indiana there is a grant offered by the state of Indiana. It’s called the Indiana Housing H2O program. Now not all lenders offer this loan, but a good amount does. To qualify you must make less than $72,800 for a household of 1-2 and $83,720 for a household of 3+ people. Plus, you must have a 660-credit score or better.
Now this is an FHA loan so the house can’t be a complete disaster and it will have to meet the FHA guidelines. This is something any fulltime Realtor should be able to help you with. This home also must be a primary residence and you must keep the loan for a minimum of 2 years. That’s it. The great thing about this loan is the interest rate is set by the state and in a lot of cases the Interest Rate is cheaper than the standard FHA interest rate. This is a great loan for anyone that will be going FHA or even someone who is going to be going Insured Conventional and only plans on being in the home for about 3 to 9 years.
See if you buy house with a 5% down conventional loan, you’ll have PMI on the property for about 8 to 9 years if you make the mortgage payment as billed. An FHA mortgage has the PMI on the loan for the life of the loan. Which means if this is your forever home you may not want to do this loan unless you have no other options. Realistically most people refinance or sell within that period. So, you could refi at some point to eliminate the PMI.