Many newly minted attorneys practicing in Washington, DC experience the same struggle. Their incomes are high but living expenses combined with astronomical student loan payments leave them with little to no savings. Is the idea of purchasing a new home possible? With home prices well above the national average, some people may not have enough savings to comfortably afford a 5% down payment.
Even the most flexible loan programs require a sizable down payment and with little money to bring to the table, most traditional mortgage brokers will turn prospective buyers away and advise them to return when they have more saved. But with the numerous financial benefits associated with home ownership, younger professionals wonder if there’s a way around this issue.
The great news is that for practicing attorneys (as well as physicians), a low cost loan program exists that will allow you to put as little as 0% down on your next home.
The only potential downside in some people’s eyes is that this is an adjustable rate mortgage. Frankly speaking, some buyers are afraid of the idea of their rate increasing should they not sell the home. Rest assured, with careful planning and an eye a semi-annual evaluation of the mortgage market, you can plan to put into place a refinance strategy should loan rates rise above what you may be comfortable with once the initial term expires.
The usual issue with any mortgage program that requires less than 20% down is that they require an additional PMI or Private Mortgage Insurance payment which can amount to hundreds of dollars per month. This program doesn’t carry with it a PMI requirement and is offered at an introductory rate of 3.75% which is extremely competitive and will allow for lower mortgage payments. This rate is locked in for the first 10 years of the loan and will adjust periodically after. With the average length of ownership of a home standing at 7 years, this is a fantastic option for most people.
For single family homes, the program offers 100% financing for any purchase up to $750,000. Loan options are also available for homes up to $1,000,000 as well.
Though this is a very basic overview of this dynamic and fantastic loan program, I’d be happy to give you more information and introduce you to trusted local loan officers who may be able to help provide the best loan possible for your next home purchase.
For more information, please feel free to reach out to me at [email protected] or 202-378-0567.