Here are the 4 most popular low-down-payment home loan programs for people who have good credit and income documentation but don’t have enough savings for a bigger down payment.
| FHA Loan | Fannie Mae Loan Freddie Mac Loan |
VA Loan | USDA Loan | ||
| Minimum Down Payment | 3.5% | 3% | 0 | 0 | |
| Borrower Eligibility | Must be active-duty military, reservist, national guard, veteran, current or surviving spouse | Must not have enough assets to afford a 20%-down payment | |||
| Minimum FICO Score | 580 | 640 | 640 | 640 | |
| Maximum Loan Limit for for single-family home in Tampa Bay | $275,665 | $424,100 | $424,100 | None | |
| Is Loan Assumable? | Assumable | Typically not assumable | Assumable | Assumable | |
| Annual Mortgage Insurance | 0.85% | Depends on down payment | None | 0.35% | |
| Upfront mortgage insurance premium | 1.75% of loan | 1% | |||
| Is Mortgage Insurance Cancellable? | Not Cancellable | Cancellable | Not Cancellable | ||
| Home Appraisal | FHA Appraisal standards | VA-licensed appraiser | USDA appraisal guidelines | ||
| Lender | FHA-accredited lender | USDA-accredited lender | |||
| Closing Costs | Seller may pay up to 6% | Gift may be used to pay 100% | Seller may pay 100%; May be financed; Gift is allowed | ||
| Homes | Primary residence | Primary, second, vacation, investment | Primary residence | Homes must be in eligible rural areas; Primary | |
| Maximum Income in Tampa Bay | None | $75,650 for 1 to 4 members; $99,850 for 5-8 members |
Notes:
1. Fannie Mae and Freddie Mac Loans are also called Conventional Conforming Loans because they conform to the guidelines set by the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Morgage Corp. (Freddie Mac). These two are government-sponsored enterprises. They buy mortgages from lenders and sell them to investors.
2. For FHA’s FICO score, many lenders require higher than 580