No down payment

Hi Granny nanny,

It is always a better option to save money for the down payment and then apply for a mortgage. Nevertheless, as you don't have down payment, you will have to go for a Private Mortgage Insurance (PMI) in order to get a mortgage. Once you have more than 20% equity in your property, you may be able to cancel off the PMI.

Thanks,

Jerry

The only mortgages that require zero down payment are:

USDA: You and your family must have income below set limits and the proeprty must be in a USDA approved area

VA: you must be a veteran

Aftre that, the next smallest down payment is 3% for Community Homebuyer convential loans and after that 3.500% for FHA mortgages.

Hi Granny nanny!

Welcome to forums!

I agree to what John has said. However, if you don't have a down payment, then you may ask your parents, spouse or relatives to gift you the money. The gifted money can also be used as a down payment while you take out a mortgage.

Feel free to ask if you've further queries.

Sussane

If you get a gift for the down payment, the minimum is 3.5% for the FHA mortgage.

To do a conventional mortgage, you would still need 5% of your own funds.