If you are cash strapped but really want to buy a house, then we have an FHA program
with a 1/2 % down payment and also FHA no money down.
The 1/2% down payment FHa loan is not available for manufactured homes and is only
available for SFRs, condos, and townhouses. As of the time 6/12/16 we have just
two lenders offering the program. The standard FHA loan has a 3.5% down payment
and requires a minimum 620 credit score, though there are some lenders that will
go to 580 on this. With the lower credit score, the ratios max at 43% and buying
power is diminished. With an FHA loan you will pay upfront MIP (mortgage insurance
premium-1.75% of loan amount) plus a monthly premium. The upfront MIP can be financed
over and above the loan amount, or paid in cash or by the seller or a lender credit.
Additionally, the monthly MIP must be paid for the life of the loan.