There are many loan programs available through various lenders. The requirements will vary depending on the type of loan that suits your needs best.
It is recommended that you visit with a loan officer prior to viewing property to understand loan requirements and get pre-qualified.
To secure a mortgage typically a down payment on the loan is required. One exception is a VA loan where the veteran can get 100% financing up to a loan amount set by the VA.
Conventional financing usually requires a minimum of a 3% down payment. FHA financing requires a down payment based on FHA’s loan to value calculations.
Funds for the down payment must be verifiable by the loan company.
Depending on the loan, a borrower can obtain a “gift letter” and use these “gifts funds” as a down payment. A “gift letter” states that the money is a gift with no intention or obligation for repayment.
The borrower, at closing, will sign a document stating there are no agreements for funds except those stated on the contract and approved by the mortgage company. “Side agreements” are strictly prohibited by law.