Have a low debt-to-income ratio: Your debt-to-income ratio measures how much of your monthly income goes towards debt payments. Lenders prefer borrowers with low debt-to-income ratios.
Meet the loan-to-value ratio: The loan-to-value ratio (LTV) compares the loan amount to the home’s value. Lenders typically prefer LTVs below 80% for low down payment mortgages.
By understanding the different types of low down payment mortgages available, considering the benefits and drawbacks, and taking steps to save for a down payment, you can increase your chances of achieving your homeownership goals.
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