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by | Oct 26, 2017 | Buying, Mortgages |

Now that you’ve decided to start your new home search, you wonder what loan options may be available without breaking the bank. Whether you are a first time homebuyer or a repeat buyer, FM Lending has the right program to best fit your goals.

As a first time homebuyer, one may think buying a home would be nearly impossible without having the traditional 20% down payment. Many alternate options are available from Conventional programs with as little as 3% down, or FHA with 3.5% down – most of these programs allow for various private mortgage insurance (PMI) to protect the bank in case of default.

Fannie Mae released a program, HomeReady, with a low down payment of 3% and offers affordable terms and cancellable PMI. Our HomeBuyer Boost through HomeReady includes incentives up to $1000 in lender credits (through the end of the year) with Homebuyer Education to prepare buyers for homeownership and meeting income requirements.

North Carolina Finance Housing Agency allows for down payment assistance to qualified borrowers through their bond programs. The down payment assistance is an interest free loan that does not require monthly repayment… the assistance is repaid once the home is sold or refinanced and is even forgivable after 15 years.

Some government agencies offer up to 100% financing for buyers purchasing in rural areas through USDA. Though USDA does hold buyers to some income caps, there are several areas in NC that qualify for this type of financing with a reduced Guarantee Fee rather than Mortgage Insurance.

If you previously served in the U.S. Military, a VA loan may be best suited for you. VA allows for up to 100% financing and avoid PMI, however, it does include a financed Funding Fee if VA eligibility was used in the past.

With so many low down payment and no down payment options available, buyers don’t need to deplete their savings to purchase a home and can still stock away for a rainy day. Speak with the experts at FM Lending to find the best program for you and make homeownership affordable.

Want to learn more about making homeownership affordable?

Contact us today!

About Seema Parmar-Sturkie

Seema is a full-time mortgage consultant at the Fonville Morisey Realty Stonehenge office.

Fonville Morisey Realty has 11 sales offices, with over 850 associates and employees throughout the Greater Triangle region.  FM offers mortgage, insurance, property management, title services, real estate education courses and relocation services through its divisions and partners. For more information about Fonville Morisey Realty, visit