If you cannot afford to put a lot of money down on a home, you’re not alone. It is an all-too-common situation, especially among first time homebuyers. And because that is the case, there are several solutions. Following are some of your options if you cannot afford a high down payment on your mortgage in Los Angeles.
1. Apply for a conventional loan with 3% down.
While many homebuyers believe that you need to be able to put 10 to 20% down on a conventional loan, there are conventional loans that do not carry such a high down payment requirement. Through the Conventional 97% LTV Program, your down payment could be 3%.
2. Consider an FHA loan.
Another loan program with a similar down payment requirement is the FHA mortgage program insured by the Federal Housing Administration (FHA). You may be eligible for a down payment requirement of only 3.5% even without a perfect credit score.
3. Check into USDA and VA mortgages.
There are two government-insured mortgage programs which include zero down payment for eligible borrowers. These are the VA mortgage program backed by the Department of Veterans Affairs and the USDA mortgage program backed by the US Department of Agriculture.
4. Local programs are here to help you with your down payment.
There are several state and local programs which seek to make homeownership more attainable for those who do not have a large amount of money to spend on a home.
If you are a low-income first-time homebuyer, investigate the Affordable Homeownership Program through the Community Development Commission of the County of Los Angeles. If you are employed in the field of education, check into the CalPlus School Teacher and Employee Assistance Program (School Program).
I Can Help You Qualify for a Loan with an Affordable Down Payment
Helping borrowers overcome barriers to homeownership such as high down payment requirements is one of the most rewarding aspects of my work. If you need to purchase a home with a low-down payment, please contact me at (818) 601-2231 to schedule a consultation. You could be closer to homeownership than you think.