At Homestead Financial we want to be your trusted mortgage lender. We offer many types of home loan options, so there is sure to be one that’s the right fit for you. If you’re looking to save money on your next home purchase, we’re here to help. We offer low mortgage interest rates and have helped happy customers in Arkansas, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, Ohio, Tennessee and Texas find their homes. Check out our low down payment and no down payment loans below. We’ve also included a great list of what you can do with the money you saved from our great deals. You can also learn more about each of these loan types under the Programs tab on our homepage.
Low Down Payment Loan Programs
Conventional Loans
Conventional loans have strict requirements compared to other loans, like FHA.
- The lowest your credit score can be is 620.
- If your credit score is in the 600’s, you will likely need to put more money down.
- You cannot have any disputes on your credit report with a conventional loan.
- You cannot have any judgments or liens. If you currently have one, you need to pay it off, and have proof it’s paid off, before you can get a conventional loan.
- If you have had a bankruptcy you will have to wait four years after it’s dismissed to get a conventional loan.
- If you’ve had a foreclosure you have to wait seven years after the completion date of the foreclosure action before you can get a conventional loan.
FHA Loans
FHA credit guidelines are much less harsh than conventional loans. Your income can be lower, you can have more debt, and the minimum you would have to put down is 3.5%. Here are some of the main requirements of an FHA mortgage loan:
- You need to have a minimum credit score of 500. But, if your score is that low then you have to put more money down.
- If you have no credit at all, or a credit score ranging from 500-579, then you are required to put 10% down.
- If you have a credit score that is 580 or above, then you are only required to put 3% down.
- Every borrower on the loan has to have a current credit report pulled. If you happen to have no credit at all, your loan officer can help you to document what’s called “alternative credit” to show that you are able to make on-time payments. Things that would qualify for alternative credit would be on time rent payment, utility payment, or cell phone bill payment.
- You can’t get an FHA loan if you are currently in default on a government loan like a student loan or taxes until you pay them off.
- You can’t get an FHA loan if you have collections due in excess of $2,000.
- If you have had a bankruptcy you will have to wait two years after discharge to get an FHA loan.
- If you’ve had a foreclosure before you have to wait three years after discharge to get an FHA loan.
- You will need to prove that you have steady employment for the last two years.
No Down Payment Loan Programs
VA Loans
VA loans are for primary residences of veterans, military service members and their surviving spouses. The goal of VA loans is to get veterans into homes as a way to pay them back for their service.
They offer low rates and no down payment!
- To qualify, the service member must have served at least 90 days of active duty. They also need to have not been dishonorably discharged.
- VA loans don’t require a down payment if the home you’re looking to purchase falls into the loan limits. You can read more about those limits here.
- There is no minimum credit score to get a VA loan, but a score of 620 or higher is beneficial.
USDA Loans
USDA loans are meant to help develop less populated areas of the country by helping middle-income borrowers purchase a home. So it is a requirement that the home you are trying to purchase is in an approved rural area.
- USDA loans require no down payment! Yup, zero money down!
- There is not a minimum credit score for a USDA loan, but generally a score of 640 or higher is preferred for home loans.
- If you have no credit, your loan officer can help you to document non-traditional credit (sometimes called alternative credit) to show that you are able to make on-time payments. The alternative credit would look at things like on time rent payment, utility payment, or cell phone bill payment to show that you are capable of paying on time.
- You can’t get an USDA loan if you are currently in default on taxes or a government loan such as a student loan, until you pay them off.
- You can only have one USDA loan at a time.
What Do I Do with the Money I Saved?
Wondering what to do with all of the money you saved because you partnered with Homestead Financial for your mortgage? The possibilities are endless! Here are some great ideas to get you started:
- Take a vacation
- Buy a new car
- Save it for a rainy day
- Start a college fund
- Use it to furnish your new home
- Get the house painted inside and out
- Redo the kitchen
- Paint the cabinets
- Get new cabinet pulls or knobs
- Add open shelving
- Get a new backsplash
- Get new flooring
- Add an island or breakfast bar
- Finish the basement
- Re-do the master bedroom
- Re-do the bathrooms
- Add radiant heating under the tile floors
- Get new interior doors and knobs
- Paint your front door a new color
- Put in a pool
- Build a man cave
- Give the garage a refresh
- Get new garage doors
- Add storage, shelving, and racks
- Paint the floor and walls
- Get hardwood floors
- Get new energy efficient windows
- Add dormers
- Get solar panels and reduce your energy use and cost
- Get a new roof
- Update the HCAV System
- Get a new TV
- Get a great home security system
- Get new siding
- Upgrade the appliances to new energy efficient ones!
- Get a new
- Washer
- Dryer
- Oven
- Stove
- Microwave
- Kitchen Sink
- Dishwasher
- Coffee Maker
- Add a
- Wine fridge
- Prep sink
- Smart thermostat
- Get all new light fixtures
- Re-pave the driveway
- Add crown molding
- Turn it into a smart house
- Update the laundry room
- Make improvements to the back and front yard
- Landscape the lawn
- Put in a fence
- Make a fire pit
- Lay a new patio
- Build a deck
- Get a nice swing set for your kids
- Get a shed
- Refresh the flower bed
- Update the entryway
- Add window boxes
- Save it for home maintenance
- Getting the gutters cleaned
- Removing trees/having potentially problematic tree limbs cut
- Buy a new lawn mower, or
- Hire someone to cut the lawn
Visit the programs section of our website to learn even more about our different home loan options and how we can get you started on your dream of home ownership today!