MORE BANKS NOW OFFERING 5% DOWN CONVENTIONAL LOANS!

I still get comments from time to time from people who believe it is still really had to get a loan. If you are one of those people read on and you will be pleasantly surprised. If you need help finding a good lender in the Tampa area give me a call at 813-777-5332 and I will put you in touch with my broker. Richard Kemper RE/MAX Realty Unlimited

 

More banks offering loans for 5% down?

NEW YORK – Nov. 7, 2013 – For the last few years, buyers have been hard-pressed to land a mortgage if they didn’t have a 20 percent down payment, unless they turned to the Federal Housing Administration’s (FHA) low down-payment loans.

But a growing number of banks now offer loans with just 5 percent down, CNNMoney reports. For example, Bank of America, Wells Fargo and TD Bank are among the lenders reportedly offering mortgages with down payments as low as 5 percent.

TD Bank is offering a “Right Step” loan product that allows borrowers to get a loan with a 5 percent down payment while also allowing borrowers to get up to 2 percent of the sales price as a gift from a relative or third party. In actuality, then, borrowers would only need to come up with a 3 percent downpayment themselves.

Banks offering 5 percent down payment loans, however, also require borrowers to buy private mortgage insurance (PMI). Borrowers must keep PMI until they build up 20 percent equity in the home.

Source: “Banks Offering Mortgages with Only 5% Down Payments,” CNNMoney (Nov. 5, 2013)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s