if you have decent credit and a steady income, you might be qualified for a number of specialized programs that require no or very little down payment. Here are a few of the options:
First, there's the USDA loan, which is valid for homes in certain regions, such as rural and suburban areas. Below is a map showing the areas that are not eligible, as you can see most of Southern Maine is eligible....Except Portland, South Portland.
With zero money down and lenient credit requirements, the USDA loan can be a great choice for many homeowners. There is RD-direct (where you apply directly through the Gov't) and RD-guaranteed (the lender loan is guaranteed by RD).
Second, there’s the VA loan, which you can apply for if you or your spouse served in a branch of the military.
It's one of the most generous zero-money-down mortgage because of low interest rates and low closing costs.
Third, there's the FHA loan. It does require a 3.5% down payment — still drastically more achievable than the 20% required for a conventional mortgage.
Finally, there are a number credit unions and first-time homebuyer programs that might apply to your particular situation.
There’s one important thing you should know.
If you get one of these no-money-down mortgages, chances are good you will be required to pay private mortgage insurance, which can drive up your monthly payments.
Fortunately, private mortgage insurance will disappear after your mortgage balance is under 80%. Also, the money you do pay will be tax deductible in most cases.
I highly recommend Tamika Donahue at RMS Mortgage. She has been a mortgage broker for over 20 years, is super nice, straightforward, and can really help you find the right financing option.
Branch Manager, NMLS# 399388
Residential Mortgage Services
24 Christopher Toppi Drive
South Portland, ME 04106
Office: (207) 523-8416
Cell: (207) 749-4364
Deb Barouch recommends Ed Gosselin, at Guaranteed Rate:
The ruler of all deviled eggs: the quail egg with Indonesian mayo and Sriracha at the newly opened Tempo Dulu. Settle in for the "three"-course prix fixe, and you'll enjoy an amuse, shrimp crackers with sambol peanut sauce, your first course, a mid-course ('cause you know how you get hungry between courses), your entree, a pre-dessert and oh, yes, dessert.
The Danforth, 163 Danforth St. Portland
DID YOU KNOW?
Improving your credit score may save you money on your home financing. That's because higher FICO (Fair Isaac Credit Organization) scores typically result in better interest rates. There are also industry and lender level guidelines relative to a borrower's credit ratings and history that help determine: Your qualification for certain loan programs. Your capacity to repay the loan. Your interest rate.
HOW FICO CREDIT SCORES WORK
FICO scores are the credit scores most lenders use to determine your credit risk. You have three FICO scores, one for each of the three credit bureaus - Experian, Equifax, and TransUnion. Each credit score is based on information the credit bureau keeps on file about you. As this information changes, your credit score will change as well.
FICO CREDIT SCORES BREAKDOWN
The examples shown below are all calculated on a Sales Price of $250,000 with a 20% Down Payment of $50,000 for a Loan Amount of $200,000 as a 30 Year Fixed Rate and Term:
*APR = Annual Percentage Rate **Monthly Payment does not include taxes or insurance
With over 30 years of experience helping Maine buyers & sellers!