Are there any mortgage loans that require less than 20% down?

Posted by admin on February 27th, 2010 and filed under mortgage loans | 2 Comments »

I already own a house and now I want to buy my parents a house. Besides the programs for first-time homebuyers, are there mortgage loans out there that require less than 20% down?

In the UK lenders are very slowly increasing % loans and it is now possible to borrow up to 90% with a few high st lenders.(eg RBS) However rates with low deposits are not particularly attractive. Not all lenders will lend if the property is to be occupied by a dependent relative.
You do not say if you have a mortgage yourself. If you have your earnings must cover both mortgages. If you do not have a mortgage, or even if you do, you could remortgage your own house to raise a larger deposit & qualify for lower rates. To get best advice speak to an independent mortgage adviser.

2 Responses

  1. bluenose1949 Says:

    In the UK lenders are very slowly increasing % loans and it is now possible to borrow up to 90% with a few high st lenders.(eg RBS) However rates with low deposits are not particularly attractive. Not all lenders will lend if the property is to be occupied by a dependent relative.
    You do not say if you have a mortgage yourself. If you have your earnings must cover both mortgages. If you do not have a mortgage, or even if you do, you could remortgage your own house to raise a larger deposit & qualify for lower rates. To get best advice speak to an independent mortgage adviser.
    References :
    Independent Mortgage Adviser
    http://www.asfinancial.eu

  2. Charles Says:

    Yes, with both conventional and FHA. The FHA will allow for 96.5% LTV or 3.5% down payment.

    FHA rates are at an all time low.
    References :
    Please feel free to contact me by email or by phone for further information on one of our great products.

    Charles K. Pinkus
    Loan Originator
    Mortgage Now, Inc.
    206.631.2452 direct
    901.292.8671 cell

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