Low and No Down Payment Mortgage Options for Pennsylvania Homebuyers
One of the most challenging aspects of becoming a homeowner is securing financing. Saving up for a 20 percent down payment can be intimidating and feel impossible, but you don’t necessarily need 20 percent down to achieve the dream of homeownership. Here’s a look at ways to get a no-down-payment mortgage in Pennsylvania, or ways to put far less down as you buy your home:
- Private Mortgage Insurance: Let’s start with a low down payment option. If you have good credit, you may be able to put as little as 3 percent down while paying what’s called private mortgage insurance, or PMI. Each month, in addition to paying principal and interest, you’ll also be making a premium payment on your PMI policy until you can demonstrate that you have enough equity in your home for PMI to be removed.
- FHA Loans: If you have a poor credit history, an FHA loan may be the ticket. FHA loans require at least 3.5 percent down, which makes homeownership possible with little investment up front.
- VA Loans: If you’re a veteran, an active-duty member of the military or part of the reserves or National Guard, you may have access to VA loans. A VA loan requires nothing down, just a funding fee which can be included as part of the loan.
- USDA Rural Development: Available through the United States Department of Agriculture, a rural development loan is available if you meet specific income and credit requirements. The best part is that you don’t necessarily have to live in a rural area to get one of these loans – you only must live in an area designated for rural development loans, which often drift to larger, more urban areas. There’s no down payment required, but these loans are only available to low- and moderate-income lendees.
- PA Housing Finance Agency: There are always state and local agencies ready to help, and in the Keystone State we have the PA Housing Finance Agency. Visit PHFA to see if you quality for down payment or closing cost assistance. This can make the difference between continued renting and achieving the dream of homeownership.
Can you buy a house without a down payment? The answer is yes. When you’re looking for a home in York, PA, turn to the team at CENTURY 21 Core Partners. One of our experienced and knowledgeable agents can provide expert guidance and recommendations as you search for a new home and the financing to make it possible. We know this market inside and out, as well as the sources of financing that have helped our clients in the past.