Specialty Lenders Group Has A Full Suite Of
Zero Out-Of-Pocket Down Payment Mortgages, Zero Down Payment Mortgages, And Low Down Payment Mortgages
You’ve entered our 3% – 5% Down Payment Mortgage Store.
Browse around. We’re sure you’ll find the perfect mortgage.
Let us know if you need help with anything.
Loans With A 3% - 5% Down Payment
If you haven’t saved much, but want to have a personal stake in the form of a vested equity interest, or to lower your loan amount and payment, consider our 3% – 5% Down Payment Mortgages.
Fannie Mae – HomeReady Mortgage
3% – 3.5% Down
Expanded access to credit, affordable pricing, low down payments and cancellable mortgage insurance. On a $400,000 you’d only need $12,000 (3%) down.
Other factors:
- Mortgage Insurance: Required, 25% reduced coverage, cancellable at 80% loan-to-value. Annual mortgage insurance only, nothing upfront
- Minimum Credit Score: 620 with DU Approval, 660 for manual underwriting. Non-traditional credit can be used if there are no scores or limited credit history.
- Amortization of 1st TD: 15 yrs. or 30 yrs.
- Amortization of 2nd: N/A
- Maximum Loan Amount: Up to $647,200, subject to borrower qualifying
- First Time Buyer: Not required
- Occupancy: Must be owner-occupied, primary residence
- Gifts: Permitted, must be seasoned and verified
- Maximum Borrowers: N/A
- Property Types: SFR, Condo & Townhomes, PUDs, 2 – 4 Units, Manufactured Housing, Co-ops, existing and new construction
- Income Limits: 80% of Area Median Income (for example, in Riverside County, CA, 80% of the Area Median Income for 2022 would be $62,000)
- Income Sources: Income from room rent allowed, income from other occupants allowed
- Stacking: Cannot stack with other programs
- Maximum Debt-To-Income Ratio: 50%
- Concurrent Ownership: Yes, the occupying borrower can have an ownership interest in another property
- Present Housing Expense: Must show
- Closing Costs: 2% – 5%, estimated.
- Seller Concessions: 3%, 6%, or 9%, depending on the down payment
Freddie Mac – Home Possible Mortgage
3% Down
Freddie Macs Home Possible Mortgages is designed with greater credit flexibility and offers a low down payment solution for moderate income borrowers.
Other factors:
- Minimum Credit Score: 660
- Amortization of 1st TD: 15 yrs. or 30 yrs.
- Amortization of 2nd: N/A
- Maximum Loan Amount: $647,200, subject to qualifying restrictions
- First Time Buyer: Not required
- Occupancy: Must be owner-occupied, primary residence
- Gifts: Permitted, must be seasoned and verified, Down Payment Assistance is allowable
- Maximum Borrowers: N/A
- Property Types: SFR, 2 Units, Condo, PUDs
- Income Limits: 80% of Area Median Income (for example, in Riverside County, CA, 80% of the Area Median Income for 2022 would be $62,000)
- Stacking: Cannot stack with other programs
- Maximum Debt-To-Income Ratio: 43% subject to approval by FM Loan Product Advisor, 45% if manually underwritten
- Borrowers: US Citizens, Non Permanent Residents with a work visa & Permanent Residents with a Green Card (Form 1-551)
- Homeowner Education: Not required unless it’s a purchase where all borrowers are first-time homeowners, or credit reputation is established from non-traditional sources
- Concurrent Ownership – Yes, but only one (1) other property
- Closing Costs: 2% – 5%, estimated
- Seller Concessions: 3%, 6%, or 9%, depending on the down payment
FHA – 3.5% Down Payment Mortgage
As a long time friend to first time home buyers, the present iteration of the FHA Mortgage continues its tradition as the premier point of entry for those who may need a little help on their road to homeownership. With a low 3.5% down payment requirement, flexible underwriting guidelines, attractive interest rates, and a mission that says do all we can to make responsible loans to deserving first-time buyers, FHA has garnered almost 10% of the mortgage market. And consistent with its mission, 83% of the loans made is to first time home buyers.
Other factors:
- Mortgage Insurance: Required, 1.75% up front, and .85 annually for borrowers making the statutory minimum 3.5% down payment.
- Minimum Credit Score: 580 and higher for those seeking to make the minimum down payment of 3.5%. For those borrowers who can make a 10% down payment, FHA will permit credit scores down to 500. Generally speaking, a borrower should strive for a 620 score.
- Amortization of 1st TD: 30 yrs. or 15 years.
- Amortization of 2nd: N/A
- Maximum Loan Amount: From $420,680 to $970,800, depending on the county in which the property is located.
- First Time Buyer: Not required
- Occupancy: Must be owner-occupied
- Gifts: Permitted, must be seasoned and verified
- Maximum Borrowers: No limit
- Property Types: SFR, Condo, PUDs,
2 – 4 units, and Manufactured Homes - Income Limits: None
- Stacking: FHA loans can be funded in conjunction with other products, typically down payment assistance programs.
- Maximum Debt-To-Income Ratio: 41%, with AUS exceptions
- Borrowers: US Citizens, Non Permanent & Permanent Resident Aliens
- Homeowner Education: Not required
- Concurrent Ownership – Not allowed
- Closing Costs: 2% – 5%, estimated
- Seller Concessions – 6%
Fannie Mae – HomeReady Mortgage
3% – 3.5% Down
This is the standard Fannie Mae Home Loan and does not have the relaxed guidelines found in Fannie Mae’s Home Ready product.
Other factors:
- Mortgage Insurance: Required on all loans with a down payment that’s less than 20%. There is no up front mortgage insurance required. The annual mortgage insurance rate varies depending on credit score, loan-to-value, and term
- Minimum Credit Score: 620 with DU Approval
- Amortization of 1st TD: 15 yrs. or 30 yrs.
- Amortization of 2nd: N/A
- Maximum Loan Amount: $647,200 in most of the country, up to $970,800 in high cost areas
- First Time Buyer: Not required
- Occupancy: Not required
- Gifts: Permitted, must be seasoned and verified
- Maximum Borrowers: N/A
- Property Types: SFR, Condo & Townhomes, PUDs, 2 – 4 Units, existing and new construction
- Income Limits: None
- Income Sources: Standard
- Stacking: None
- Maximum Debt-To-Income Ratio: 45% with DU Approval, 50% with DU Approval along with 12 mths reserves and LTV equal to or less than 80%. 36% for manually underwritten loans
- Concurrent Ownership: Yes, the occupying borrower can have an ownership interest in another property
- Present Housing Expense: Must show
- Closing Costs: 2% – 5%, estimated.
- Seller Concessions: 3%, 6%, or 9%, depending on the down payment
To find out more about SLG’s No Down Payment and Low Down Payment Mortgages,
please contact us today. Call 855.SLG.FUND (855.754.3863) or inquire above.
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