Skip to Content

  • Looking for your first home? Now is the time to buy!
    Let us show you low- and no- downpayment options today.

    Great news! With the many options now available for qualified buyers, you may be able to buy a home sooner than you ever thought possible. Below are 5 mortgage programs that require little or no money down:

    1.“97% LTV” Conventional Loans: The 3% Solution!

    • For 1-unit principal residences only, including condos!1
    • Fixed-rate mortgage with maximum 30-year term
    • Loan limits: $484,350 in most counties
    • Down payment and reserves may come as a gift from an eligible donor2

    See us to compare the cost of a conventional loan vs. FHA loan:

    Conventional 97% LTV3

    3% downpayment minimum
    No upfront mortgage insurance premium
    Monthly mortgage insurance can be terminated

    FHA

    3.5% downpayment minimum
    Requires upfront mortgage insurance premium
    Most FHA loans require monthly mortgage insurance for the life of the loan

    Now available for qualified buyers: the new Freddie Mac Home Possible® Mortgage offers reduced rates on private mortgage insurance for low- to moderate-income borrowers.

    2. FHA Loans: Downpayments as low as 3.5%

    Federal Housing Agency (FHA) loans have the benefit of a low downpayment. Be certain to compare the overall costs of all loan products, including the monthly and long-term costs and conditions of the required mortgage insurance. FHA loans require both an annual Mortgage Insurance Premium (MIP) and an Upfront Mortgage Insurance Premium (UFMIP).

    On January 26, 2015, FHA reduced the annual MIP4 that new borrowers will pay by half of a percent. This action is expected to lower the cost of housing for the approximately 800,000 households who use FHA annually.5 For example, on a 30-year fixed mortgage loan with a principal balance of $200,000, the savings to the borrower could be $1,000 a year.

    3. Conventional Loans: Downpayments as low as 5% PLUS Gift Funds allowed

    Qualified first-time and move-up borrowers may be able to get a conventional loan for as little as a 5 percent down. In addition, the funds needed to complete the transaction may come from a personal gift from an acceptable donor. This may include funds for all or part of the downpayment, closing costs, or financial reserves.6

    4. VA Loans: 0% downpayment

    Veterans, active-duty service personnel, and reservists deserve to live the American dream that they help protect. Features of the VA loan program include:

    • Up to 100% financing for qualified borrowers
    • Choice of fixed-rate or adjustable-rate products
    • Funds for down payment—plus all closing costs—can come entirely from gifts, grants and waivers

    5. USDA Rural Development Guaranteed Housing Loan Program: 0% downpayment

    If you’ve been house hunting in an outlying area, a “Rural Housing” loan is designed to create opportunities for those with limited savings or modest incomes.7 There are no minimum down payment or cash reserve requirements, and closing costs may be financed as part of the loan amount.

     

    There are a variety of downpayment options available. It’s important to note that loans with low downpayment features may require monthly mortgage insurance which could increase the overall cost of the loan. Talk with a home mortgage consultant for additional details. Contact us today for a complimentary consultation.

     

    1 Manufactured housing is not eligible.

    2 Acceptable Gift Donors: A relative of the borrower (borrower’s spouse, child, or other dependent, or one related by blood, marriage, adoption, or legal guardianship), a fiancé, fiancée, or domestic partner.

    3 Available for qualified buyers and limited cash-out refinance.

    4 HUD Mortgagee Letter 2015-01, January 9, 2015

    5 HUD Press Release No. 15-001

    6 Subject to certain minimum borrower contribution requirements. Certain affiliation and relationship restrictions may apply. See your home mortgage consultant for specific details.

    7 Credit is subject to approval. Property location and income restrictions may apply and homebuyer education may be required.

  • 1.“97% LTV” Conventional Loans: The 3% Solution!

    • For 1-unit principal residences only, including condos!1
    • Fixed-rate mortgage with maximum 30-year term
    • Loan limits: $484,350 in most counties
    • Down payment and reserves may come as a gift from an eligible donor2

    2. Conventional Loans: Downpayments as low as 5% PLUS Gift Funds allowed

    Qualified first time may be able to get a conventional loan for as little as a 5 percent down. In addition, the funds needed to complete the transaction may come from a personal gift from an acceptable donor. This may include funds for all or part of the downpayment, closing costs, or financial reserves.3

     

    1 Manufactured housing is not eligible.

    2 Acceptable Gift Donors: A relative of the borrower (borrower’s spouse, child, or other dependent, or one related by blood, marriage, adoption, or legal guardianship), a fiancé, fiancée, or domestic partner.

    3 Subject to certain minimum borrower contribution requirements. Certain affiliation and relationship restrictions may apply. See your home mortgage consultant for specific details.

  • FHA (Federal Housing Administration) loans are designed to make housing more affordable, particularly for first time homebuyers. FHA loans typically permit borrowers to buy a home with a lower down payment than conventional loans. These loans must meet certain criteria.

    FHA Loan

    • Streamlined refinances
    • Available for a variety of loan terms
    • Typically requires mortgage insurance


    Features

    • Available in a variety of fixed-rate and adjustable-rate loan options.
    • May allow you to use a gift or grant for all or a portion of your closing costs.
    • Current FHA homeowners may be able to obtain an FHA streamline refinance.
    • You typically have to pay upfront and monthly FHA Mortgage Insurance premium.


    Benefits

    • Requires less cash upfront for your down payment and closing costs.
    • Available for all income levels.
    • Allows a new buyer to take over the loan if you sell your home (subject to loan approval).
    • Provides reduced paperwork if you're eligible for an FHA Streamline Refinance.
    • A co-applicant can help you qualify even though they do not live in the home.


    Considerations

    • Be certain to ask your home mortgage consultant to help you compare the overall costs of all products, including the monthly and long-term costs and conditions of the required mortgage insurance.
    • You can typically only have one FHA mortgage at any given time.
    • In many instances, you may find FHA to be a more expensive financing option and should be considered after thoroughly evaluating all other product options that meet your credit qualifying and financial needs.

     

  • The mission of USDA Rural Development’s program is to assist low to moderate income, rural home buyers achieve their dream of homeownership.

    Edina Realty Mortgage offers USDA loans to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. These loans must meet certain criteria. As an approved lender, Edina Realty Mortgage offers this financing option and can help applicants purchase a home with affordable interest rates and loan terms.1

    Features include:

    • Budget-friendly benefits — No minimum down payment or cash reserve requirements; closing costs and fees may be financed as part of the loan amount up to 100% of the appraised value2
    • Contributions allowed — Interested party contributions up to 6%; gifts and grants are permitted
    • Built-in resale advantage — Loans are assumable, with Rural Development (RD) approval, giving qualified future buyers an option to take over your existing interest rate and remaining loan term

    1. Eligible only for single family, primary residences purchased within the eligible rural areas as defined by the USDA. Credit is subject to approval. Property location, asset and income restrictions apply, and home buyer education may be required.

    2. A guarantee fee is charged and collected at the time of closing and can be paid by the buyer or seller, or financed. Loan amounts may exceed the appraised value of the property (e.g. >100% LTV) to include the amount of a financed guarantee fee. This applies only to loans for which all or a portion of the guarantee fee is being financed into the loan. Information is accurate as of date of printing and subject to change without notice.

Take Advantage of...

Take Advantage of Dropping Rates

Thursday, August 8, 2019

As interest rates have dropped to near-historic lows, it’s clear that now may be the right time to buy a home or refinance your mortgage. According to Freddie Mac, the average interest rate on a 30-year fixed-rate mortgage is 3.60 percent as of August 8, 2019, down from 4.59 percent at the...

View Full Article
New Loan Programs...

New Loan Programs with Down Payment Assistance

Monday, July 29, 2019

Edina Realty Mortgage recently launched new loan programs with down payment assistance, which offers eligible homebuyers more financing options that require little or no money down. Homebuyers who qualify for the Welcome Home or BorrowSmart program may be able to purchase a home with a...

View Full Article
Back to top