Choosing a Down Payment Option That is Right for You

When looking at purchasing a new home, one of the biggest questions that could come up is what to do about the down payment. There are many options for down payments so it is important to find the option that is right for your current situation and your future financial goals.

Look at Your Goals

Just because you have decided to purchase a home, it does not mean that your goals for that home are the same as every other homebuyer. You may be a first-time homebuyer looking for a starter home or you could be looking to right-size for your current situation. All of these factors will come into play when looking at your down payment options. If you are a first-time homebuyer you may be interested in programs with lower down payments so that you do not deplete your savings. If you are right-sizing, the equity you have built in your current home may allow you to put 20% down on the new home, although this may not be the right strategy for your current situation. Your dedicated Mortgage Consultant at Cambria® Mortgage™ is a great resource to help you look at your goals and find the right option for you.

FHA Loan

An FHA loan, backed by the Federal Housing Administration, requires just 3.5% down. To qualify, you must have a minimum credit score and there are some upfront costs along with monthly premiums as well. Even with the additional costs, it may be the right choice for you especially since the FHA loan allows a gift to the homebuyer for the amount of the down payment. Often, the FHA loan will offer better rates than a Conventional loan with lower FICO score requirements.

Conventional Loan with 3% Down

As an incentive for first-time homebuyers, Conventional loans can now be acquired with as little as 3% down. With this option, there may be income limits and you may need a higher credit score than with an FHA loan, but the Conventional loan may still be the right fit for you.

Consider State and Local Programs

Many state and local programs are available for low- and moderate-income families and first-time homebuyers. These programs allow you to purchase a home with only a small down payment required. For example, with the Minnesota Housing Finance Agency you can purchase a home with as little as $1,000 down. You can inquire about available programs through your local or state housing agency, however, Cambria Mortgage and your Mortgage Consultant are experienced with these loans and can help you learn what programs and assistance are available for you with one simple phone call.

VA Loan

The VA loan is one of the most powerful lending programs available and is reserved exclusively for veterans, reservists, and active duty personnel along with their eligible spouses. Cambria Mortgage specializes in VA loans and considers it an honor to help veterans get all the benefits they’re entitled to for service to our country. Part of the benefits of a VA loan include no down payment. If you are eligible for a VA loan, this is a perfect time to call and work with one of the Certified Military Housing Specialists at Cambria Mortgage.

USDA Rural Development Loan

If the property you are interested in is located in a designated area, it may qualify you for a USDA Rural Development loan. With this loan, there is the potential for no down payment and no mortgage insurance, but the properties that qualify are typically outside of the metro area. Work with your Cambria Mortgage professional to see if the property you are looking at qualifies you for this program.

Call Cambria Mortgage

To get started, call Cambria Mortgage at 952-942-0110 or visit Our team of experts will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.

Celebrating 15 Years of Proven Success, Trusted Experience

In July, Cambria Mortgage celebrated our 15 year anniversary! From your hometown lender, a sincere thank you to our community, partners, employees, and customers for helping us reach this milestone. Cheers to many more years of excellence.

Rates are Rising: Why Not to Worry

The recent headlines allude to a rising rate environment, but that may not tell the whole picture. While rates have increased slightly in the past few months, they are still near historical lows and should not be seen as a deterrent for buying a home or securing a lower rate with a refinance.

Welcome Home: Discover the Cambria Mortgage Difference

Buying a home is one of the biggest decisions of a lifetime. Given the financial and emotional value of your investment, it makes sense to work with a mortgage company you know and trust. We asked John Schroeder, CEO/President of Cambria® Mortgage™, to explain the hometown difference.

Your Lifestyle, Your Mortgage: Choosing the Right Home Loan

As we swing into the fourth quarter of 2016, it continues to be a strong year for real estate. With historically low interest rates for primary and secondary residence loans, now is a great time to refinance your current home loan, buy a new home, or invest in a vacation home with a mortgage that fits your lifestyle.

Remodeling ROI: How to get the biggest bang for your renovation buck

If you’ve been thinking about remodeling your home, you’ve probably realized that it’s both an emotional and financial decision. For example, if you love to cook, a new kitchen with a chef-grade stove may bring you countless hours of joy and entertainment. But if you might be selling your home within the next few years, you also want to know the kitchen will pay for itself when the “For Sale” sign goes up in your front yard. Here are some tips to help you get the biggest bang for your renovation buck.

Why Refinancing Makes Sense Right Now

By replacing your original mortgage with a new, more cost-effective loan, you can lower—and lock in—your interest rate, improve your term, reduce your monthly mortgage payments, and save thousands of dollars over the life of your loan.