"Conventional" mortgage loans are home loans that are not government insured and they require a down payment of 3% to 5% of the purchase price depending on which program you qualify for. Other than for a few special programs for low to moderate income buyers, the down payment must come from your own funds and cannot be a gift or borrowed without security*. In addition, the seller is not allowed to pay any of your "prepaid expenses" to close the loan and that raises your up front cash needs.

*(You can borrow the down payment if the loan is "secured". For example, you can borrow against the equity in your car or 401k. However, the new payments will count against you in qualifying for the loan payment. It would not be acceptable to borrow money against credit cards or from family - that would be "unsecured" debt.)

VA LOAN:

If you are an eligible veteran, you can buy up to $200,000 with nothing down. (You can use your VA Loan over and over!)

DID YOU KNOW? Many military reservist qualify for a VA loan and don't know it! If you aren't sure, call your local Veteran's Administration office. You may have more buying power than you think.

FHA LOAN:

The Federal Housing Administration, a department of HUD, insures mortgage loans and let you make a small down payment. The down payment requirement by FHA is 3% of the purchase price. FHA allows the seller of the home to pay all closing costs and prepaid expenses. This means that you can negotiate those costs into the price and actually get in the home for a bare 3% of the purchase price. In addition, FHA will allow your down payment to be "gift" money. If a member of your family signs a "gift letter" that says you do not have to pay back the money, you can use their money for 100% of the down payment. So, with a little help, you can buy a home under FHA with nothing out of your pocket!

"GIFT MONEY" can be used as your down payment on FHA loans. Gift money is money given to you by a family member or someone very close to you that is used as your down payment. The giver must sign a letter that says you do not have to repay the money. Of course, you may choose to repay the money later if you wish!

You can also use a NON-OCCUPYING CO-BORROWER on an FHA loan. This means that a family member or close friend can apply for the loan with you and use their financial strength to help you get the loan.

THE BEST WAY to know how much FHA loan you qualify for is to have a mortgage loan officer pre-qualify you. Click here to pre-qualify.

COMMUNITY HOME BUYER / AFFORDABLE GOLD :

These are Conventional Loan programs that lets you put as little as 3% down payment and that money can be a gift or loan from family.

MORTGAGE FINANCE AUTHORITY (MFA):

This is a special program in New Mexico for low-to-moderate income home buyers who have not owned a home in the last three years. If you qualify for the program, your total down payment requirement is only 1% of the purchase price!

"Your mortgage loan specialist in New Mexico"