It is getting easier for some buyers to land a house with less money up front.
More lenders are lowering down-payment requirements, allowing borrowers to commit 3%—or even less—of a home’s purchase price to get a mortgage. Many had been requiring down payments of at least 20% since the recession began.
Some lenders also are waiving mortgage-related fees, and more are allowing down payments to be made by other parties, such as the borrower’s family.
The deals are aimed at buyers with good credit scores and a steady income who have been unable to save enough for a sizable down payment. They are often targeted at buyers who live in expensive housing markets, where even a small down payment can equal tens of thousands of dollars.
Low-down-payment mortgages have long been available. The Federal Housing Administration insures mortgages with down payments as low as 3.5% and it islowering the annual mortgage-insurance premiums on new mortgages beginning on Monday. Read more HERE.