Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Stacy Himley from Guaranteed Rate. In this episode, Stacy talks about the things buyers can be aware of in regards to their income during the pre-qualification process. You can reach Stacy at 605.605.690.2305 or Stacy.Himley@rate.com Her office is located at 304 4th St Brookings SD, 57006 or on the web at www.Rate.com/StacyHimley
Low Down Payment Programs
- Good mornin' everybody. Shane here from the Brookings Home Team powered by Century 21. It is Monday morning, 8:15, and this morning we've got Stacy Himley here from Guaranteed Rate. Real quick before we get started, as always just please let us know as you come in. Give us a heart. Give us a thumbs up. Let us know where you're coming from, and of course be sure to tag or share this video with anybody else that you think would benefit from it as well, but let's just jump right in on this beautiful Monday morning.
- Oh the sun's out, right? We gotta celebrate that .
- That's, yeah, while we can.
- That's right.
- So, what do ya got for us today?
- Today I'm gonna talk a little bit about low down payment programs. We get this question a lot, and there's still a lot of misconceptions out there as far as, ya gotta have 20% down, you gotta have all this money, and not very often do we run into somebody even on a first or second house that has that full 20% down that seems to be the myth out there. So, really quick the ones that people hear about a lot are VA, if you've had any military experience it's zero down. That's a wonderful program for our vets, and USDA around here is zero down also. So, the zero down, you have to meet income limits, but it's a very good program also. The next best thing is a 3% conventional programs that people don't talk about a lot around here. Fannie Mae and Freddie Mac both have their own low down payment program, HomeReady and Home Possible they are called. They're a little tricky in some parts of the area because they go by census tracts. So, you don't know until you find the specific house if it's eligible or what income limit you have to hit for that property, and you also have some income limits, but zero down, excuse me, three down on that, and then FHA is 3.5% down. So, some good options for lower down payment availability to still get you into a home.
- You said census tract?
- Can you
- So, there's a website each of'em have, and we just plug in the address, and it says what census tract it is. What's funny is sometimes they'll be a house on one side of the road where you can be at a hundred percent of the median income for that program, and then on the other side of the road you can only be at 80% of the median income. So, it's kinda goofy that way. You don't know exactly. You can kind of tell what areas of town or if they're under the income limit, under that 80 even, it doesn't really matter as long as the property is in we're good, but most of the community is in. It would just be whether you can be at 100% of the income limit, 80, or it's waved in some too.
- Okay. Perfect.
- So, a little trickiness to it, but it's a good program too if they don't quite have the 5%, which would be the standard minimum down for conventional. So, just a couple different options that we hear of.
- But you definitely don't need 20% down.
- Yeah . No that is one
- That went away a long time ago, and people still thinks it's the truth.
- It's nice if you do have it there. Then you don't have the PMI and all the other stuff with it. So, there it is. That is this week's Monday morning mortgage tip. I'll have Stacy's information on the top, on the bottom, on the sides, wherever your device allows you to see that, and if you haven't seen it yet we do have our podcast going as well. Be sure to jump on our podcast page there, and I can put that in the notes so you could listen to all the other podcasts that we've done here about mortgages. We've done these tips, and I've had some other information on there as well. So, feel free to jump on to that. Next week we will not be here 'cause it's Memorial weekend. So, we are taking that weekend off and that weekday off. So, we will be back though in June. I think it's June 2nd or 3rd. I can't remember for sure. So, be sure to look for us then. Thanks guys for watching this week. Enjoy your week. Have a safe and happy Memorial weekend, and hope to see you guys soon. We'll talk to you later.
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