The standard used to be 20% down on all mortgages or else you faced the dreaded PMI Insurance. Today people aren’t putting their full 20% down and some are able to do it without having to pay PMI insurance. One of the most popular ways to get a low down payment mortgage is by getting an FHA loan. Until the end of 2008 you were only required to pay 3% down to get these loans, but after the first of 2009 that amount will rise to 3.5%.
Getting a low or no payment down loan has some drawbacks, you can also expect to pay the PMI insurance if you’re not putting down 20%. Fortunately some places offer loans that will help defray or avoid PMI insurance, such as the Quicken Loans PMI Buster.?
If you’re hoping to get a low or no credit loan, then you’d better come with a good credit rating. This is the most important thing to most lenders, especially now. They want to know that you’re adept at handling finances and that you’re not likely to default on your loan. The mortgage business isn’t as lucrative and safe as it once was and lenders are likely to be cautious.