Buying a home somewhere in the wide expanse of the United States metropolitan culture, is a dream nurtured by millions. But, home buying is not so much difficult for regular buyers as it is for first-timers. Thankfully, the scenario currently is in favor of first-time home buyers and they are finding it easier to get their first home loans at more relaxed rates and conditions that had existed previously. In this context, let us talk about the most important part of the entire home loan scheme; the down payment. What does a down payment mean and why pay? Once you have chosen a home, you can either pay it in cash from your savings or simply borrow money from the bank. In most cases, people need to borrow money from banks and certain banks offer to provide you with 100% financing. But, mostly people do not like settling for the option. This is where the question of down payment arises and one makes the initial payment from his bank account. Once you agree to make a small down payment, the remaining amount of the home purchase would be paid by your bank. The down payment that one needs to make, depends on the type of mortgage he has signed up for. Today there are a number of mortgage loan types and they can also be customized to meet the needs of the borrower. You can take any amount of down payment you wish to have, as long as you have provided the lender with his minimum requirement. The most popular low-or-no-down payment mortgages include FHA loan, VA loans, Conventional 97, USDA loan and Home-ready mortgage. Out of all the mentioned types, VA and USDA allow a 100% financing benefit. The FHA loan allows for a 3.5% down payment, while the USDA and Conventional 97 permits for a 3% down payment plan. While FHA is friendly towards first-timers, VA mortgage rates are the lowest when compared to other mortgage types. How helpful is a down payment assistance program? First-time home buyers often cite that down payments are like impediments in the path of home ownership. Reason why, most first-timers opt for down payment assistance programs (DPAs). To most people’s surprise these programs actually exist and are quite wide spread all over USA. Millions of people have till date benefited from them, because qualifying for a loan with them is not very difficult. If you are looking forward to secure some help from down payment assistance programs, you will have to get in touch with the best VA loan advisers and other cities of US to weigh your chances.
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