Most people believe buying takes far more cash than it really may.
Fannie Mae consumer research found that about 90% of consumers either overstate or do not know the minimum down payment for a typical mortgage. The point is not that everyone qualifies. The point is that many renters rule themselves out without ever checking the real numbers.
Conventional: as little as 3% down
Fannie Mae's HomeReady mortgage allows down payments as low as 3% for eligible borrowers. For loan casefiles underwritten through Desktop Underwriter (DU), Fannie Mae does not impose one universal minimum credit score; the complete loan file and lender requirements still matter.
FHA: scores may begin around 580
FHA loans can allow down payments as low as 3.5%. Some borrowers may qualify beginning around a 580 credit score, although lenders can require higher scores and all other guidelines still apply.
USDA: zero down
Qualifying buyers may receive 100% financing in eligible rural areas. Household-income and property-location requirements apply. USDA loans may offer competitive rates, and direct-loan options can include payment assistance.
VA: zero down
Eligible Veterans, service members and certain survivors may be able to purchase with no down payment. VA-backed loans often offer competitive terms and do not require monthly private mortgage insurance.
DTI tells a lender how much of your monthly income is already committed.
DTI means debt-to-income ratio. Add the monthly payments for the proposed home, car loans, student loans, minimum credit-card payments, child support or alimony and similar debts. Divide that total by your gross monthly income before taxes. For example, $2,000 in monthly debt divided by $5,000 in gross income equals a 40% DTI.
Fannie Mae notes that some qualifying conventional borrowers can have a total DTI as high as 50%. That is not a universal limit or a promise of approval; credit, cash reserves, loan type, income stability and underwriting results also matter.
Some new-construction homes in DFW are currently advertised under $300,000.
Current builder pages also advertise limited-time financing opportunities on select homes. Prices, inventory, financing and incentives vary by home and buyer, so the complete terms matter.
Important: Prices, rates, inventory and incentives can change and may apply only to select homes, qualified buyers, approved financing and specific closing dates. Always review the actual loan terms, APR, lender fees, required down payment and total cash needed.
The free guide gives you the complete starting point.
Find out before you sign another lease.
I work with renters every day, so I am not going to tell you that buying is automatically better. If renting still makes more sense, I can help with that too. But if you are closer to buying than you thought, you should know.
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