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The lowdown on low-down payment mortgages

September 19, 2022 conventional mortgage, down payment, fha loans, First Time Homebuyers, homeready, rates, the morty report, usda loan


A new zero-down option, plus more ways to put down less on your home

This week, Bank of America announced a “no-down” mortgage program called the Community Affordable Loan Solution, aimed at closing the racial homeownership gap. It’s the latest of various no- and low-down payment mortgage options, as growing numbers of buyers seek more affordable paths to becoming homeowners.

Government-backed options such as FHA loans are among the most well-known, offering buyers more lenient credit score requirements and down payments as low as 3.5% – a good fit for many first-time homebuyers. VA and USDA loans also have varying low and no down payment options for qualified military veterans and homebuyers in rural communities. 

But there are also a number of conventional options that can offer similar benefits. Fannie Mae’s HomeReady program, for example, offers first-time buyers who meet certain income requirements the option to put down as little as 3%. Fannie Mae’s standard 97% LTV mortgage offers similar terms to buyers without the income restrictions. 

Other non-traditional options such as rent-to-own and down payment assistance programs can also make it possible to buy a home without having a significant down payment saved. While rates, inflation, and home prices may be out of your control, it’s exploring other tools and solutions that can help to make homeownership more affordable.

– Robert Heck, Vice President of Mortgage @ Morty


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The Morty Report conventional mortgage, down payment, fha loans, First Time Homebuyers, homeready, rates, the morty report, usda loan

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Morty is a licensed mortgage broker. NMLS ID # 1429243. NMLS Consumer Access. All loans originated by Morty are funded by third party lenders. Morty, Inc. is authorized to do business as “Morty” in certain states. Morty is an equal housing lender.

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