Homes are now out of reach for many people as the interest rate has been up for a few years. For people who have low budgets, some loan schemes can help to purchase a house with a small to no down payment.
USDA loans
This is a loan provided by the U.S. Department of Agriculture. One of the special features of this loan is that they finance 100% by providing the mortgage. This is especially for the ‘Rural Housing Loan’, but not specifically for rural development. The USDA’s goal is to help “low-to-moderate income homebuyers” across most of the U.S., excluding major cities. Special features of this loan are no down payments, below-market interest rates, and monthly mortgage insurance.
VA loans
VA is a non-down payment loan for people who are available to members of the U.S. military, veterans, and surviving spouses. Although it is strict for veterans of the US, they are helpful to the members. Some key benefits of this mortgage loan are, no down payment, flexible credit scores, below mortgage rates, no mortgage insurance required, and not be disqualified immediately.
FHA loans
FHA is a mortgage by the Federal Housing Administration (FHA) that doesn’t lend money directly. Rather, the FHA sets basic lending requirements and insures these loans once they’re made. The loans themselves are offered by nearly all private mortgage lenders. This mortgage system provides a down payment of just 3.5% in all U.S. markets. Some other benefit of this loan is the payment might come from the down-payment assistance, and the minimum credit score is 500 with a 10% down payment, or 580 with a 3.5% down payment.