In a recent, unscientific study done by a Loan Officer in the Pacific Northwest, a significant percentage of those polled believed that they could not obtain a mortgage with less than a 20% down payment.  In reality, Borrowers have the following options available to them:

VA LOANS continue to be available to qualified Veterans and active service members with zero down payment and no monthly mortgage insurance.

USDA LOANS (United States Department of Agriculture) offer two different zero down options to low and moderate income families that purchase homes meeting the program guidelines and are located within the geographical boundaries of the USDA territory.

FHA LOANS may be obtained with a minimum of a 3.5% down payment and have less stringent requirements than other loan products.

CONVENTIONAL LOANS may be obtained with as little as a 5% down payment with the private mortgage insurance (PMI) either being financed into the loan at closing or paid monthly, depending on the Borrower’s qualifications and preference.

WSHFC (Washington State Housing Finance Commission) offers down payment assistance to qualified 1st time homebuyers allowing them to obtain a 1st and a 2nd mortgage totaling 100% financing.  This down payment assistance may be used for down payment and/or closing costs and pre-paids, allowing moderate income families to purchase affordable and safe housing.

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