NEW MORTGAGE PROGRAMS ALLOW FOR 1% DOWN

If you’ve been wanting to move to a new home, but haven’t been able to due to the lack of a down payment, you may now have some options. Increasingly, lenders are offering programs that help more people get financing.

D. Shane Whitteker is the owner at Principle Home Mortgage in State College, Pennsylvania. He specializes in helping guide his clients through the mortgage process step by step.

According to Whitteker, lenders are now offering very low down payment options. This is opening the door to home ownership to many who otherwise may have been shut out.

“Some of our lenders are getting more aggressive with programs that help facilitate more transactions,” Whitteker says. “Currently Principle Home Mortgage has access to a 1% down payment conventional loan option. This mortgage product allows for a scenario where someone can access conventional financing with a very low down payment option.”

By largely removing the worry about coming up with a sizable down payment, these new loan options are allowing more people to buy the home of their dreams.

Whittaker says the new programs don’t erase the down payment, they just defer it.

“The way it works is the bank actually applies a lender credit towards the down payment requirement of 3%. The bank in reality makes a portion of the down payment,” Whitteker says. “The cost of this is added on to the interest rate. The increase in the interest rate to accomplish this is negligible for most borrowers.”

Before buying a home, its a good idea to speak with a mortgage broker. A broker can help walk you through all of your lending options, as well as help facilitate the transaction. Contact D. Shane Whitteker at State College based Principle Home Mortgage to compare your options and figure out what is best for you as a client.