Mortgage options available for less than 20 percent down payment

May 8th, 2013

Federally-backed mortgages are available for less than 20 percent down payment, encouraging first-time buyers.

Houses are available for those who would like to put down less than 20 percent down payment, according to the Mortgage Reports. As the housing market continues to improve and more people are looking to buy homes of their own, options are opening up for responsible applicants who would like to begin with a smaller down payment.

The National Association of Realtors reports that 73 percent of home buyers in 2012 made a down payment of less than 20 percent when investing in real estate. Trustworthy programs are available for those looking to be able to afford a new home. One such program is run by Fannie Mae, named the Conventional 97 program, and calls for a minimum 3 percent down payment for a mortgage and is backed by the federal government. As the economy recovers, the federal government is putting more trust in these programs in an effort to encourage first-time home buyers to enter the market.

These options are becoming especially appealing in the current housing climate, as 15-year fixed mortgage rates have hit an all time low, with 30-year rates not far behind, making buying a home increasingly more affordable.