If you’re ready to take a big step and buy a home, but haven’t saved enough for the traditional 20% down payment, there are mortgage options that may be right for you. First Mid offers several mortgage financing products that could get you into a home with less of a down payment.
To see if you qualify for any of these programs or loans, connect with a mortgage lender near you.
If you still need down payment assistance, you may qualify for the Downpayment Plus® program*. This program offers forgivable grants to assist with down payment and closing costs for households with qualifying income levels. Beginning January 17, 2023, grant amounts may be up to $10,000 and are forgivable after owning the property for a five-year period. Because this is a federally funded program, assistance is offered each year only while funds are available.
A Rural Development Loan helps low- and moderate-income households buy a house by allowing buyers to finance up to 100 percent of the home’s value. Participants must meet income eligibility guidelines and the property must be located in eligible areas.
This program, through Freddie Mac, makes home buying possible for buyers with very low to moderate income. This program allows buyers to purchase with as little as 3 percent down payment and allows down payment funds to come from a variety of sources, including gifts. Home Possible also offers reduced mortgage insurance rates and premiums and even allows a variety of property options, as long as it’s an owner-occupied, primary residence.
This is a first-time homebuyer product, through Freddie Mac, that allows a down payment as low as 3 percent of the purchase price, and the down payment may be gifted from another source. This program does not have geographic or income restrictions; however, the property must be a single-family dwelling. The HomeOne Mortgage is a fixed rate mortgage with no pre-payment penalty, so it’s a great way for first-time borrowers to budget their home expense and still pay down the balance quicker – when they can afford to pay a little extra.
The Federal Housing Administration is a federal agency under the umbrella of the U.S. Department of Housing and Urban Development. An FHA Loan allows a down payment as low as 3.5 percent of the purchase price of the house. Plus, with more flexible credit qualifications than conventional mortgages, FHA Loans can help both first-time homebuyers, and those rebuilding their credit, more easily obtain home ownership.
Eligible veterans and their surviving spouses may be eligible for the VA to guarantee a portion of a loan obtained by a private lender, allowing the lender to provide more favorable terms.
If you do not qualify for any of these products, ask us about conventional loans with private mortgage insurance.
*Downpayment Plus® is a program from the Federal Home Loan Bank of Chicago. Restrictions apply. Visit the Federal Home Loan Bank of Chicago’s website for complete requirements. Downpayment Plus® is a registered trademark of the Federal Home Loan Bank of Chicago.