You Don't Need 20% Down By Sandra C Brown
July 16, 2019
The present myth is it takes 20% down and a credit score over 700 to secure a home loan. Lets take a look at several loan programs. There are the program requirements, some lenders add their own requirements on top of these and they do vary.
FHA the easiest to qualify for usually.
FICO score 500 - 579 10% Down
Fico score 580 and above 3.5% Down
PMI upfront 1.75% of loan Annual Fee .45% -.85% depending on credit and equity factors. PMI for life of loan.
VA for veterans
No score or down payment requirement from VA. However a FICO score of 620 is common from lenders. Must have DD214 with Honorble Discharge
Fannie Mae refered to as Conventional or Conforming
Credit score of 620
5% down for fixed 10% down for ARM
Must pay PMI until 20% equity.
Fannie Mae and FHA both have rehab loan programs as well