Conventional 30-Year Fixed Loan
Have you been thinking about purchasing a home and wondering if you have to come up with a 20% down payment for a conventional loan? Well, we have good news for you! With Silver Leaf Mortgage you can get into your dream home with as little as 3% down! That is a game-changer! Three-percent down is so much more attainable than the old rule of a 20% down payment.
Silver Leaf Mortgage offers a choice of loan programs that may be perfect for you. In the past, when a borrower wanted to keep the down payment low, the only option was an FHA loan with a 3.5% down payment, or a VA loan for a veteran or active duty military. HomeReady and Home Possible are loan options that are typically faster and easier than an FHA loan, and have the advantage of being conventional loans. In addition to having no up-front mortgage insurance (MI), HomeReady and Home Possible loans often have a lower monthly payment than an FHA loan.
HomeReady and Home Possible loans are available with reduced monthly mortgage insurance or lender-paid MI. These programs are also available to first-time home buyers. They are often a good choice because the down payment can be completely from gift funds. Some couples have even set up a gift fund where their family and friends can deposit wedding gift money specifically for a down payment!
In addition, with a HomeReady or Home Possible loan you may be able to save up to $525 on your appraisal at closing.
The 20% down myth started because people didn’t want to pay PMI (Private Mortgage Insurance), but the industry said they needed to. With a conventional loan, if you put less than 20% down, you will need to purchase PMI, but you can stop paying it as soon as you have 20% equity in your home. You will reach that point as you make payments and your loan balance goes down, and as your home appreciates (increases in value), your equity also increases.
If you aim for a 5% down payment, the mortgage insurance is not overwhelming, and it gets you into a home, which means that you are building your housing wealth. Homes generally appreciate at about 4.5% a year historically, so the amount you are “earning” by buying earlier outweighs the amount you will pay in PMI in the years it takes to hit the 20% equity mark. Of course, you must have enough income that your debt to income ratio is not too high in order to get a mortgage.
Whatever the amount you have ready for your down payment, Silver Leaf Mortgage can help you with your 30-year mortgage. Give us a call for excellent low rates.
A HomeReady 30-year Fixed rate loan requires a FICO credit score of at least 640. The home you purchase must be your primary residence and there are some income limits depending on where the property is located so call for details when you have a general idea of where you would like to buy.Community Second loans are allowed up to 105% combined loan to value (CTV). Call for details.
Home Possible loans allow for a non-occupant co-borrower. This opens up another opportunity for a family member or friend to help with the purchase. There are some conditions, so it is best to give us a call.
There is no requirement to be a first time homebuyer, but homeownership education is required prior to close for at least one borrower. Choose from one of the following: 1) Homebuyer Education Courses offered at no cost through Silver Leaf Mortgage 2) an online homeownership education developed by mortgage insurance companies, 3) Homeownership Education programs that meet the National Industry Standards for Homeonwership Education and Counseling, 4) programs using Freddie’s CreditSmart (provided Modules 1, 2, 7, 11, and 12 are included).
Reach Out to Silver Leaf Mortgage Today
It is always a good idea to speak with a Senior Loan Officer at Silver Leaf Mortgage before you go house hunting with your Realtor so that we can provide you with a pre-approval letter. Sellers are far more likely to accept an offer that is backed up with a lender letter indicating that you will be able to get a loan to complete the purchase transaction.
Call Silver Leaf Mortgage today to find out how you can get a great rate, a faster closing, no up-front MI, lower payments, $525 for your appraisal at closing and all for as little as 3% down! At Silver Leaf Mortgage, we are a Denver mortgage company with over 98 years of combined experience in the lending industry. We know how exciting and overwhelming a new home purchase can be, and we’re committed to guiding you every step of the way. Our motto is “to love and serve our clients well.” Call now (720) 458-4036.
For example, the principle, interest and MI payment on a $200,000 30-year fixed rate loan at 4.875% interest and 97% loan-to-value (LTV) is $1,170.09. The Annual Percent Rate (APR) is 5.614% with estimated finance charges of $5,600. The principle and interest payment does not include property taxes and homeowners insurance, which will result in a higher actual monthly payment. Current rate as of 10/6/18. The APR is calculated using the Actuarial Method.