Save in Real Estate by Getting a 3% Down Mortgage Rate

These days it is best practice to get a mortgage with the lowest down payment that is possible. Even if your credit is a little shaky you still stand the chance of getting a mortgage with a small or even no down payment. These types of mortgage loans not only offer great up front savings but they also offer many great tax breaks.

One of the best ways to get a mortgage with a little or no down payment is to live in the residence for as little as a year before purchasing the home. This is often called "owner occupant financing" and many lenders like this type of financing. But, no matter the situation there are many low or no down payment financing options available for almost anyone.

These days the five to ten percent down payment has become very common. If the borrower's credit is in stellar condition, the borrower can expect to get a loan for as much as 125% of the purchase price or value of the home. This type of financing is very beneficial when you as the borrower are planning to live in the home. In a lot of cases where you do not plan to reside in the residence that you are purchasing you could expect to pay as much as 30% down. These types of cases are very steadfast especially when it is a buyer's market. When it is a seller's market a lender will expect the purchaser to put more money down when financing a home.

There is a wide variety of lenders that offer low or no down payment mortgages. Banks, credit unions, and mortgage brokers will typically all offer some type of these programs. Realtors themselves are also a great avenue to use when trying to get this type of financing, as they stay up to date on these types of loans to better equip them to make a sale. Governmental agencies like the Federal Housing Administration (FHA) offer the best low or no down payment mortgages on the market today. FHA is often times misconstrued by the fact that they only provide financing to low income families, and this is not true. Income makes no difference in qualifying for an FHA loan.

Although income may not make the difference FHA loans can have limits all depending on the area that you live in. In bigger cities an FHA loan can be available for a home in the $300,000 dollar price range, while in smaller more rural areas the limit may range around the $150,000 range. Due to such a vast variation in FHA price limits it is a good idea to check with your lender or realtor to find out what price range your area falls in. Look for ways to save the up front out-of-pocket expenses by studying up on low or no down payment mortgages. These types of loans will allow you the financial freedom to invest the money you have saved for a down payment elsewhere.