Low Down Payment Loans Available

For those of us who may not have the recommended 20% down for purchasing a house, there is good news. Instead of being forced to turn to the FHA for a low down loan there are now some banks who are offering loans for as little as 5% down. Banks like TD Bank, Bank of America, and Wells Fargo are offering their home loans with down payments for as little as 5% down.

Over the last few years, the FHA has been raising premiums because after the housing bubble burst the FHA dominated the low down payment market causing them to take on many high risk loans and depleting the agencies reserves. This has caused many potential borrowers to look elsewhere and certain banks think they can offer a much better deal than the FHA.

 Although the low down payment loans were very risky before, rising home prices have reduced the potential loss on these types of loans. Though these banks are offering the 5% down loans, they will also require you to purchase private mortgage insurance until the typical 20% equity in the home is built up.

If you are thinking of making a home purchase and don’t have the full 20% down, check out several mortgage lenders in Pasco, Richland and Kennewick  to see if anyone of them will offer you a low down payment loan.

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