Low or High Down Payment Mortgages: When You Need Assistance

Posted on Dec 1 2017 - 1:00am by Business Day TV

Mortgage and Loan keys on a keyboardRegardless of the amount of loan you are applying for and the type of property you plan to build or acquire using the mortgage, you will need to pay a fraction of the total loan to secure both the house and the mortgage.

Most financial institutions in Ogden will even ask for a minimum of 20 percent in down payment, a figure that most prospective homeowners find it difficult to pay upfront.

Are you one of those who needs down payment assistance in Ogden? Financial institutions such as Wasatch Peaks Credit Union can help you with that. Here are some pieces of information you can use.

Sub-Prime Loans

With these loans, you can place a down payment of even 10 percent before the lender supplies you with the full amount, or commits to funding your project.

The main reason why financial service providers ask for a down payment is they need this money to sort out the necessary paperwork and to follow up on other issues of the loan process.

Low vs. High Down Payment Loans

As you may have already experienced, some lenders will offer you a mortgage and accept a lower down payment than what other credit unions may have provided you. What is in for them in the smaller down payment mortgages is that they will slap the loan you are borrowing with a higher interest rate.

The problem that remains here is that banks in Ogden will still force you to pay the Private Mortgage Insurance since your equity is another 10% shy.

So, you can take a second loan from a different lender, whom you will give 10% down payment, then use the mortgage he or she will offer you to add the remaining 10% to the first lender. You can also choose to pay the PMI and work only with the primary lender or consider FHA loans.

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It advisable you engage a financial service provider to get the most accurate down payment assistance to avoid paying more than you would have if you chose a different option.