One of the biggest barriers which many prospective homebuyers cite when it comes to purchasing a home is the down payment requirement.

But did you know that you do not need to put 20% down on a home in Cape Coral or elsewhere in Florida?

There are many ways to potentially purchase a home with a low-down payment or even no down payment. Here are some programs and opportunities that you may not be aware of which could remove your barriers to homeownership.

Buy a Home in Cape Coral, FL

1. 3% Down Conventional Loans. Far too many homebuyers are not familiar with the Fannie Mae and Freddie Mac Conventional 97% LTV Program. With this program, you can qualify for a conventional loan with a 3% down payment. You do not need perfect credit to be eligible for this program. The minimum credit score is only 620. You do need a DTI ratio no higher than 43%.
2. VA Loans. If you are a veteran, are actively serving in the military, or you are an eligible surviving spouse, did you know that you may be able to purchase a home with zero down? The VA loan program is insured by the Department of Veterans Affairs. Through it, qualified Florida borrowers are eligible for low interest rates, zero down payment, and no PMI. During your consultation, we can look at your service record and decide as to whether a zero down VA mortgage might be an option for you.
3. USDA Loans. Another government-insured mortgage program to investigate is the USDA loan program which the US Department of Agriculture backs. As with VA mortgages, USDA mortgages may not require that you make any down payment. You might qualify for a zero down USDA mortgage if the Florida home you wish to purchase is in a “rural” area (the USDA definition is broader than you may expect). Another requirement concerns your income, which must fit under the USDA cap for your family size. With respect to the income caps, you also may be surprised at the flexibility of this type of mortgage.
4. FHA Loans. Yet another way to minimize your down payment is to apply for an FHA mortgage backed by the Federal Housing Administration. This is probably the most well-known way to purchase a home with a low-down payment and without ideal credit. If your credit score is at least 500, you could qualify for a 10% down FHA mortgage, and if your score exceeds 579, your down payment could drop to just 3.5%. The downside of FHA mortgages is that they require you to pay for mortgage insurance. This may also be a requirement with a conventional mortgage that carries a low-down payment in some circumstances. USDA mortgages require insurance too, but at a discount. But for many homebuyers, they open the door to immediate homeownership and remove what would otherwise be a necessary waiting period to afford a higher down payment.
5. Our Down Payment Assistance Program. At Island Coast Mortgage, we know that even with these great mortgage programs, you might still have a difficult time affording your down payment. In order to make it possible for you to purchase a home, we offer financial assistance which you can apply to up to 4% of your down payment or your closing costs. During your consultation, we can help you figure out which low-down payment or no down payment mortgage programs you might be eligible for. We can also let you know if you qualify for our special down payment assistance program in Florida.

Call a Mortgage Professional in Cape Coral, FL

To get started now, please give us a call at 239-214-7011. We look forward to getting you into your new home in Cape Coral or elsewhere in FL with a low-down payment or zero down.