Ask the Lender: What are my home loan options if I don’t have a large down payment?
Many people don’t know there are different ways to finance a home. Citizens National Bank (CNB) offers home loan options that could work for many homebuyers.
The most common type of home loan is a Conventional Loan, which lets buyers make a down payment as low as 3%. However, some people think they need to pay more upfront or have higher credit scores than they actually do.
CNB also offers other types of loans that might be a better fit for some buyers or those who don’t qualify for a Conventional Loan.
These loans are often called Govie loans because they’re backed by the government. Two of these programs are:
1. VA Loan (Veterans Administration)
- For active or retired military members with VA eligibility.
- No down payment required.
- No PMI (private mortgage insurance).
- Allows lower credit scores and higher debt levels.
- Often the best option for eligible military personnel.
2. USDA-RD Loan (U.S. Department of Agriculture – Rural Development)
- No down payment required.
- Has income limits based on household size.
- The home must be in a rural or eligible area.
Tim Sprague
Mortgage Loan Originator
NMLS# 747451
Phone: (419) 358-8040, ext. 114