May 8, 2018 | Bob Myers
For many first-time buyers, saving for a down payment is the most  difficult step in the home-buying process.  However, it's a common  misconception that you always need 20 percent down to buy a home.
Here's the lowdown on the most popular low-down alternative payment options:

FHA Loan – Traditionally the mortgage of choice for first-time buyers, the  Federal Housing Administration (FHA) offers government-insured loans  with as little as 3.5 percent down. The most popular FHA loan option,  the 203(b), is widely available from lenders across the country. You may  qualify with a credit score of just 500, although there may be  limitations on some condo purchases.

Home Possible from Freddie Mac – This program allows you to put between 3 and 5 percent down, as long  as you intend to use the home as your primary residence, and don't  currently own or share ownership of another house. You'll also need to  complete a required homeownership education program online.

Conventional 97 from Fannie Mae – Just 3 percent down is enough to help you qualify for a Conventional  97, as long as you're applying for a fixed-rate mortgage on a  single-family home that's less than $417,000. You'll also need to  participate in a homeownership education program, and at least one of  the purchasers applying for the loan must be a first-time buyer.

HomeReady from Fannie Mae – Another option that requires as little as 3 percent down, HomeReady  can also offer below-market interest rates. Additionally, this program  allows non-occupant borrowers to apply. For example, parents can secure  this type of loan for a young adult who's just starting to establish  credit.

To discuss the best option for you and to get a head start on your home search, contact me.  Let's talk about getting you into your new home!

Please consider The Myers Team your resource for all things real estate.  We have over 30 years of real estate experience, specializing in the Montgomery County area.  If you are refinancing, want a recommendation, need a service provider or just have a home related question, please give me a call at 301-910-9910 or email me at



You message has been sent!

Send us a Message

You agree to receive automated promotional messages from The Myers Team regarding real estate information and education.Click here for terms and privacy policy. Message frequency varies. To opt out of receiving messages from me, text STOP to cancel. Reply HELP for help. Message and data rates may apply.