You can get a low down payment mortgage in Houston with several different programs. In some cases it is possible to buy a home with a little as a few hundred in cash.

First the bad news; unless a wealthy relative will finance you it is no longer possible to buy a home if you have bad credit and no money! If that is your situation you need to improve your credit, save up a large down payment, or both. Here is a rough idea of how much cash down you might need if your credit is weak:

30% or more cash down with a credit score below 520

20% down at 520

15% down at 540

10% down at 580

5% down at 620

An exception to this would be FHA or VA loans. There is no set credit score but 575+ is where many are approved. Bankruptcy’s need to be at least 2 years old and foreclosures at least 3 years old. Recent credit should be good. Other conditions apply. Down payments for FHA are 2% or more down and VA mortgages are possible with very small payments. Another exception could be community programs (i.e. MyCommunity) or state bond programs. Credit needs to be fairly good and the down payment can be the same as other programs or slightly less.

Conventional loans for 100% of the homes value are possible with a 680 or better credit score. All programs have closing costs that are usually from 3% to 6% of the selling price. Most programs allow the seller to pay up to 3% of the homes sale price towards your closing costs. In most cases you will need to cover at least some closing costs even if the seller contributes. If you get a 100% mortgage and the closing costs are less than 3% you would have no down payment and no out of pocket closing costs.

Grant programs are sometimes available to help with down payment. There are a variety of programs but most are for first time home buyers with low family income and a 620 or better credit score. (Other conditions will apply)

Programs are constantly changing so ask a broker or loan officer for current information. You can also find information at my Houston mortgage website.

Author: Glenn Lamb
Article Source: EzineArticles.com
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