Homebuyers Have Several Low Down Payment Mortgage Options

October 28, 2016

Lenders have been turning away from FHA loans and creating their own products to appeal to buyers who can’t make a 20 percent down payment.

NerdWallet broke down low down payment loan options. Fannie Mae, Freddie Mac, JPMorgan Chase, Wells Fargo all have 3 percent down payment programs available for borrowers with decent FICO scores. Quicken Loan even has a 1% Down program. All these plans require mortgage insurance.

Bank of America and Citibank each have 3 percent down payment programs without mortgage insurance requirements, but they charge higher mortgage interest rates.

Making a down payment of less than 20% on a home is a complicated financial decision, but if it’s something you’re considering, you have options.

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