Down Payment Requirements for Your Chetek Home

by: John Flor

4 years ago

1381 views

The lack of a down payment is a common barrier to home ownership. Yet there are mortgages with very low down payment requirements – and some with no down payment requirements at all! If you are preparing to buy a Chetek home, keep these guidelines in mind!

Mortgages with no down payment

Mortgages backed by the Veterans Administration, also known a VA loans, do not require a down payment. They are only available to armed service members and veterans. There is no mortgage insurance requirement.

USDA mortgages are available in most areas of Wisconsin, including Barron County. These loans do not require any down payment. However, you will be required to pay mortgage insurance premiums. This insurance protects the lender if you default on the loan.

WHEDA mortgages, backed by the Wisconsin Housing and Economic Development Authority, offer loans with no money down. Income limits apply. Mortgage insurance is required. Not every lender participates in WHEDA, but there are several that do in Barron County.

Small down payment mortgages

FHA mortgages, backed by the Federal Housing Administration, allow 3.5% down. You can use cash gifts from family or friends as your down payment, but there are strict documentation requirements. Mortgage insurance is required.

Conventional mortgages, backed by Fannie Mae or Freddie Mac, can be obtained with only 3% down. Mortgage insurance is required. Conventional loans are a bit fussy when it comes to credit scores and debt ratios, but they tend to have competitive rates.

There are also down payment assistance programs in Barron County! Ask us for referral to local mortgage lenders, who can help you evaluate all of your financing options.

Ready to find your Chetek area home? Having the professional guidance of local real estate experts will help you succeed ! Six Lakes Realty is a locally-owned family business with over 40 years of experience in Northwest Wisconsin real estate! Call us today for friendly, hometown service!

John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806
Email: john@sixlakesrealty.com

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John Flor

A native of Chetek who returned after serving his country in the U.S. Navy for nine and a half years. Active in the community with extensive knowledge of the Chetek Chain of Lakes and the Blue Diamond Recreational Area. Specializing in waterfront and recreational property. Licensed real estate broker. Chairman of the Wisconsin Realtors Association 2009-2010 President of the Realtors Association of Northwestern Wisconsin 2008-2009 Certified Residential Specialist (CRS) Graduate REALTORS Institute (GRI) Accredited Buyers Representative (ABR) Resort and Second-Home Property Specialist (RSPS) Recreation and Resort Specialist (RRS) e-PRO designation