Many buyers believe it is impossible to buy a home without at least 20 percent down. But thanks to various government-sponsored programs, many people can now buy a house with as little as 3.5 percent toward a down payment. Veterans of the U.S. military have zero-down programs available.  Knowing your options can help you pick the best mortgage loan for you.

 Conventional Loan

A conventional home loan is a mortgage that is not insured, or guaranteed, by the federal government. They are an excellent option for borrowers who have good credit, a stable job and income and a down payment. Benefits include:

• Can be used to buy a primary residence, second home, or rental property
• Higher loan amounts
• Typically have simpler and faster approval process
• No monthly mortgage insurance with a down payment of at least 20%
• Lower mortgage insurance costs than FHA
• Mortgage insurance is cancelable when home equity reaches 20%

FHA Loan

An FHA home loan is a mortgage insured by the Federal Housing Administration. FHA loans reduce the barrier to entry for home-buyers by featuring low down payments, flexible credit requirements and more purchase power. Benefits include:

• 3.5% down payment option for qualified borrowers
• Minimum 580 or higher FICO score
• More flexible underwriting qualifications than conventional loans.
• Loan amounts up to $636,150
• 203k renovation loans with a minimum 620 FICO score

VA Loan

A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses (provided they do not remarry). Benefits include:

• No down payment is required in most cases
• No monthly mortgage insurance premium to pay
• Fewer credit restrictions
• Lower average interest rates than other loan types

Predictable monthly housing payments

A landlord can raise your rent whenever a lease expires—and often by as much as he pleases. But as a homeowner, you can lock in a predictable mortgage payment for as long as 30 years.

Appreciation

Owning a house provides you with a valuable asset and financial stability. By purchasing a home, you’ll have an asset that, in many cases, will appreciate in value over time. This makes your home one of the best investments you can make and a way to establish a financial foundation for future generations (aka your kids).

Freedom to make modifications

Homeowners don’t need permission from the landlord. They can paint any room any color, replace the cabinets, add a deck, or do any other modifications they wish. Homeownership enables you to live life under your own rules.

Built-in rainy day fund

Homeownership provides you with the opportunity to borrow money on the equity you eventually build up by consistently paying your mortgage.

A secure retirement

A home can be the ultimate nest egg, providing you with a great investment for retirement. The longer you own a house, the more it should eventually be worth.

As you get older, you can sell the home and use the proceeds to purchase or rent something smaller. Another option: Rent out the house to maintain a steady income stream so you can travel or use for other recreational activities.

It’s yours!

This may seem fairly obvious, but it’s worth emphasizing: With a rental, you run the risk of having to move out at the end of your lease. With a home, you can live there indefinitely.

Our real estate agents will work exclusively with you to discern your needs and guide you towards finding the home that ideally fits your criteria and tastes. Kairos Realty Group agents are also skilled negotiators who work tirelessly on your behalf to get you the best value. Rest assured, we’ll help you at every step of the way and answer any questions you may have.