Hey there, future homeowners! High interest rates got you worried? Don't fret. There are low down payment programs that can help you become a homeowner, even in this challenging market.
Today's Interest Rates
Interest rates are currently at their highest in nearly 23 years, with the average 30-year mortgage rate at 7.98% (30-year fixed FHA rate at 7.478%). But don't let that deter you; there are ways to navigate this landscape.
No Money Down Programs
Eligibility: Rural areas, some income restrictions
Benefits: No down payment, low mortgage insurance
Eligibility: Veterans and active-duty military
Benefits: No down payment, no PMI
Guild Mortgage Zero Down Program
Eligibility: FHA borrowers
Benefits: Second mortgage that covers down payment and closing costs. Source
Zillow Home Loans 1% Down Payment Program
Eligibility: First-time homebuyers in Arizona (expanding to other markets)
Benefits: Zillow covers 2% of the down payment at closing, allowing you to pay just 1% upfront. Source
1% Down Programs
Some lenders still offer 1% down payment programs, which can be a boon for those who can afford a small down payment but are put off by high interest rates.
How It Works
You put down 1%.
The lender contributes another 2%.
You start with 3% equity in your new home.
How These Programs Help You
Lower Initial Costs: No or low down payment means you can buy a home sooner.
Flexibility: High interest rates are less daunting when initial costs are low.
Build Equity Faster: With lender contributions in 1% down programs.
High interest rates shouldn't deter you from your dream of homeownership. With low down payment programs, you can still make that dream a reality.