Having enough money to put down on a new El Paso home can seem like an impossible goal when you have student loans, credit card debt, and other expenses to pay off. Fortunately, there are options that can help you get into your first home without having to save up thousands of dollars of your own. This guide will teach you everything you need to know about down payment assistance programs, what they cover and how they work so that you can find the right one for your financial situation.
If you’re looking for the most reliable lender around, look no further than Rocky Mountain Mortgage Company. Our rates are some of the lowest, and our customer service is unmatched. Contact us online or call (915) 593-3111 today to learn more!
Options For A No-Down Payment Mortgage
- USDA Loans
A USDA loan is one that is guaranteed by the US Department of Agriculture. USDA construction loans and USDA loans are available to support development in rural and suburban regions. A USDA loan requires no money down, which makes it much less expensive than other types of loans.
If you are an active-duty servicemember, National Guard or reserves veteran, or the qualified surviving spouse of a deceased veteran, you may be eligible for a VA loan. One great thing about these types of loans is that they don’t require collateral from you to make it happen – which means no hard credit checks. Not only this, but there’s also no mortgage insurance due when taking out this type of loan – making it easier on your budget in the long run.
Options For A Low Money Down Mortgage
A zero-down mortgage isn’t for everyone. But with a low-down payment and government grants or loans covering your initial costs, you might still be able to buy a house without putting any of your own money down. Here are some options:
Most house purchasers consider a conventional mortgage to be normal. The government does not back these mortgages, but they have lax lending guidelines, which may make it easier for first-time buyers to qualify. One of the misconceptions about these kinds of houses is that you need 20% down to start one – this isn’t true! Most of these mortgages start out at only 3%.
The Federal Housing Administration (FHA) Loan is a great option for first-time homebuyers with bad credit. This program has relaxed credit requirements and low down payments, and the FHA backs it up. You can put down as little as 3.5% if your credit score is 580 or higher, but there are other programs that require even less equity than this, such as a conventional mortgage which only requires 3%.
Down Payment Assistance
Rocky Mountain Mortgage Company in El Paso is happy to offer various home purchasing options to help make the process as hassle-free as possible. Our goal is to give you the funds necessary to cover both a down payment and closing fees when it comes time for your first step into homeownership.