Zero & Low Down Payment Programs

For Owner-Occupants and Investors

 

There are numerous types of zero and low down payment home loans for both investors and owner-occupants such as first-time home buyers. The most obvious advantage is that they break through the barrier of requiring enormous amounts of money for a property a buyer would otherwise be unable to own. J. Philip can help find the best loan to suit your unique needs and answer all your questions, including determining your closing costs.


Owner Occupant Loans

Investor Loans

Mortgage Calculator 

Mortgage Insurance 

Property with 5+ Units 

 


Owner Occupant Loans

FHA (Federal Housing Administration) - Perhaps the most common low down payment starter loan is the FHA program. The down payment is only 3%. The paperwork is more of a headache than conventional loans, and closing costs (especially MIP) are higher, but the credit requirements are quite forgiving.

VA (Veterans Administration) - This is similar to the FHA program, but is reserved for veterans who have their DD-214 form. It is a zero down program and has similar credit requirements as the FHA loan.

Community Reinvestment - These are often a $500 down type loan with requirements that vary with the lender. They are reserved for people below a certain income threshold and for localities within certain census tracts.

80/20 Loans- These are subprime programs which are actually two loans -- an 80% 1st mortgage and a "piggy back" 2nd mortgage for the remaining 20% of the purchase price. There is less paperwork for these loans but the rates are less attractive, especially on the 2nd mortgage. However, they have an advantage in that they seldom have any PMI. People who buy homes with these mortgage programs often refinance in a year or two after they've gotten their foot in the door.

Investor Loans (Non-Owner Occupant) (1-4 Units)

Most  lenders, especially sub prime lenders, have some sort of program where as much as 95% to 100% of the purchase price can be financed. Most of the time it is a blend type of 80-10 or 80-15 loan with a first mortgage for 80% of the purchase price and a 2nd loan for 10%-20% of the remainder. Programs vary over time, and underwriting quidelines change with credit and type of documentation.  Call or email us to find out what programs currently best fit your needs.

Mortgage Calculator Software

Free Mortgage Calculator - My Loan Hero 2.0 Download is here. This easy to use tool can help you calculate your mortgage payment, including taxes and insurance, instantly. We utilize it in our business and swear by it for fast answers. It is a 30 second download on DSL and takes about 2 minutes to install by just following the prompts. Free and sourced from download.com -- the best tool we have found for quick mortgage payment calulations.

If you prefer, download it directly from here (zip file):

Install MyLoanHero

Mortgage Insurance - PMI & MIP

Private Mortgage Insurance (PMI), is insurance payable to a lender when taking out a mortgage. It is an insurance in case the mortgagor is not able to repay the loan and the lender is unable to recover its costs after foreclosing the loan and selling the mortgaged property.  It is generally required by the lender on loans that exceed 80% of the home's value.

Mortgage Insurance Premium (MIP) is essentially the same thing, except that it only applies to government insured loans, such as FHA and VA mortgages.

Property with 5 or More Units

Please note that mortgage loans for properties with 5 or more units fall into the commercial category of the industry instead of residential, and therefore require larger down payments, corporate ownership and shorter loan terms in virtually all cases. These commercial and mixed-use buildings are seldom recommended for individual investors who lack significant experience and resources.

 

 

 

Note: J. Philip Real Estate is not a mortgage lender or mortgage broker. We offer our insight, experience and contacts in the mortgage industry only as a resource to our clients. Lenders reserve the right to change their programs without notice, and we cannot guarantee the existence of any particular program. However, we pride ourselves on being unsurpassedly current and knowledgeable on what is available, over our competition.