Besides FHA are there other mortgages available for people without 20% down?
Im buying a home. I’ve been pre-approved for an FHA loan well beyond what I want and know I will spend. But there are a lot homes Im interested in that do not accept FHA loans. Why, I thought these were govt insured? Anyways I don’t have 20% to put down, are there other more universally accepted loan packages that may be available to me? Thanks!
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YES, but they cost you more money (interest) and generally require private mortgage insurance (PMI).
There are plenty of properties you can buy with owner financing, lease with option to buy, or land contract. You should be able to get in to one of these deals with as little as 3-5% option or down payment.
You can do a conventional loan with 5% down. You will still need to pay PMI. Sometimes sellers do not like FHA loans because there are costs associated with the loan that the buyer cannot legally pay. Therefore, the seller is required to pay those fees.