Low Down Payment Loan Basics With Colonial


One of the biggest challenges potential homebuyers face when they are looking to buy a home is saving for the down payment. It can be challenging to save money for a home when you have rent, cell phone and other bills each month, especially if you are under the impression that it’s still necessary to save 10 or even 20 percent to put down on a home. Fortunately, that’s no longer the case.

Colonial offers home loan finance options that are sure to fit the needs of just about any potential homebuyer – including low down payment programs like FHA, VA, Conventional and Construction options. If you or someone you know is looking to purchase a new home and a low down payment loan might be a good fit, keep reading below as we discuss some of the basics of these low down payment loan programs offered by Colonial.

FHA Loan

Family sitting on stairs

Backed by the Federal Housing Administration (FHA), an FHA Loan can be beneficial for homebuyers as they may offer more inclusive qualifications when compared to some conventional loans. Designed for low-to-moderate income applicants, FHA Loans allow home buyers to put down as little as 3.5% for a down payment, which can come from gifts or grants, making these popular with first-time buyers. As with any home loan, there are a number of guidelines and requirements, so don’t hesitate to reach out to me to answer any questions you may have.

VA Loan

Colonial is proud to offer Veteran’s Affairs (VA) Loans to qualified members of the armed forces, active military personnel, veterans or their widows. VA Loans are a great loan option for those who qualify as borrowers can purchase a home with no down payment. Another advantage is a VA Loan does not require mortgage insurance like most low down payment loan options. VA Loans can still carry a one-time funding fee, so contact me so we can take a look at the numbers.

Conventional 3% Down Payment Loan

Colonial’s 3% Down Payment Loan allows first-time home buyers to put down only 3% toward the purchase of a home. This can be very appealing to potential borrowers with a strong credit history that may not have a substantial amount of savings for a home. Gift funds for the down payment are permitted as well, another attractive benefit to this program.

Construction 95% Loan

In year’s past, building a home may have been difficult for those who were not looking to put down a large sum as a down payment. But today, Colonial is excited to offer a construction loan program that allows borrowers to pay as little as 5% down with a 12-month construction term up to $453,100. Also, with Colonial’s Single Close Construction Loan, building a new home is even simpler as financing only requires one application, one set of forms and one closing, unlike other construction loan programs that may require multiple forms or liens. *Construction Loans offered in Texas and Colorado only.

Contact Us Today for More Information

Nothing makes us happier at Colonial than repeat and referral customers. When our customers come back for their second or third home loan, or when we work with a child, friend or family member of a past customer, that means we are doing something right. If you or a friend or loved one is looking for more information about a home loan, visit GoColonial.com to view the robust collection of home loan products we offer. Also, with Colonial’s new online application, you can get pre-qualified for a home loan from any device in as little as 15 minutes.

Related Article:

Think an FHA Loan may be right for you? Find out by reading our article: Do You Qualify for an FHA Loan?

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