If you’re like most people, you’ve read about the historically low interest rates available on mortgages, and started to wonder whether or not this might be the right time for you to buy a home. After all, home prices are more affordable now than they have been in years, and with low mortgage interest rates, it’s easier than ever to purchase a home with affordable monthly payments. Yet there may be one thing holding you back: worries about having to make a hefty downpayment.
The fact is that not having the traditional 20 percent downpayment is not a road block to homeownership… despite the foreboding reports you may read in the paper or see on the news. There are actually a number of options available for people that are ready to buy, but may not have a war chest of financial reserves to fund their home purchase.
One of the most popular financing options, FHA loans, require downpayments of only 3.5 percent of the purchase price. In addition, FHA loans have very generous credit and debt limits, and typically have reduced closing costs that can sometimes be covered through the mortgage loan. Another option, USDA loans, have absolutely no downpayment requirement, and are available to borrowers with a wide range of credit scores. These USDA loans are extremely popular with LGI Homes buyers, because of their clear guidelines, relatively easy qualification standards, and excellent incentives. Besides these government-backed loans, there are also a number of private institution loans that require low or no downpayments, catering to borrowers in a variety of financial situations.
Here at LGI, we have helped thousands of renters become homeowners through just these sorts of no money down programs. We believe in the viability of allowing people to pursue their dreams of homeownership, and don’t think that families should have to deplete their savings accounts just to purchase their dream home. Instead, with no money down financing and low interest rates, LGI Homes homeowners are making the move from renter to owner with their financial security intact—a vital key to ensuring their ongoing happiness and financial stability.
No money down homes and low-cost mortgages are a reality, and they’re helping people just like you move into brand new homes, making good on their own American dream. If you’re interested in learning more about the variety of financing options available to you, just stop by one of our new home communities, and we’ll be happy to put you in touch with one of our preferred lenders.