Is it possible to buy a house in Bakersfield for less than 20% down?
Bakersfield is one of the best locations for moving if you want to enjoy a high quality of life, great weather, and proximity to LA. The problem most first-time buyers encounter a problem: the down payment is larger than expected.
Not everyone can afford to put down 20%, but the truth is, this is not a requirement for you to become a homeowner. The good news is that you can now buy a home in Bakersfield with low-down or even zero-down payment programs. Contact a Bakersfield mortgage broker if you want to know more.
Let's explore the most popular loan types with down payment requirements of less than 20%.
Buying a house with no money down
First-time home buyers would be thrilled to know they can buy a house in Bakersfield with zero down payment. The VA loan and USDA loan are two government-backed loans that offer zero down payment mortgage loans to eligible borrowers. Keep in mind that you still need to pay closing costs when you close the loan.
The USDA zero down program requires a credit score of at least 640, while the VA loan zero down allows scores of as low as 580 to 620.
If you need assistance, you can contact a mortgage broker in Bakersfield to help you out.
Low down payment loans
If you don’t qualify for the zero down payment programs, you can try out these low down payment programs as your next option.
Conventional fixed-rate loans
A conventional loan is one of America's most sought-after loan products. With a fixed-rate loan, you can rest assured that you’ll keep the same interest rate for the term of your loan. You can choose from 10, 15, 20, or 30-year loan terms.
You can get a conventional loan with as low as a 3% to 5% down payment, but lenders would require you to pay for PMI. PMI or private mortgage insurance is usually 1% of your loan balance that you pay per year. PMI payments are canceled once you reach 20% equity on your home.
If you think that a conventional loan is right for you, you can get pre-approved for a conventional loan by Accelerated Lending Group.
FHA loans
An FHA loan is another low-down payment program that you can apply for. This loan is backed by the Federal Housing Administration and is designed for first-time home buyers with low credit scores.
Down payments can be as low as 3.5% if you have a 580 credit score. If you have a lower score, you’ll need to put down at least 10% to qualify.
Also, Keep in mind that FHA loans are only for primary homes. Vacation homes and rental properties are not allowed by the program.
To learn more about the various loan products available for your Bakersfield home purchase, contact Accelerated Lending Group of Bakersfield, CA.
Are you ready to become a homeowner?
You don’t need to put down 20%. In fact, you can buy a home in Bakersfield with a conventional loan with 3% down or even apply for loan programs like VA and USDA loans which offer zero down payment programs for those who qualify.
Talk with one of our loan officers and get started on owning your dream home.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.