Potential home buyers who can’t quite pony up the traditional 20% down payment have often had FHA loans as an alternative. But some lenders are shying away from these loans for legal and regulatory reasons.
Over the last few months, those same lenders have begun filling the gap with their own low-down-payment loan products. Some require mortgage insurance, similar to FHA loans. The premiums you pay protect the lender in case you default.
Here’s what you need to know about the low-down-payment programs from major lenders.
3 is the new 20