5 Zero or Low Down Payment Mortgage Programs

#4 Federal Home Loan Bank of Atlanta’s (FHLBA)

FHLBA is a forgivable second mortgage of up to$5,00 to assist first me home buyers toward their down payment & closing costs. Buyers must contribute a minimum of $1,000 of their own finds and the FHLBA will provide matching grant funds of up $5,000 to be applied to the buyers closing costs and down payment. Buyers do not have to repay these funds if they remain in the home for at least five years. To be eligible for this program, a member’s total household income must not exceed 80% of the area median income for the county in which the home is being purchased.

#5 Conventional 97

the Conventional 97 mortgage program is backed by the government. It’s offered via Fannie Mae only. The program is not available via Freddie Mac, nor is it available via the Federal Housing Administration (FHA), Department of Veterans Affairs (VA) or the U.S. Department of Agriculture (USDA). The Conventional 97 program requires a 3 percent down payment, at minimum. The 3 percent minimum is based on the lower of the home’s appraised value or purchase price. 3 percent on a $200,000 home purchase is $6,000 for down payment. By comparison, an FHA mortgage would require at least $7,000 down. The seller may pay up to 6% of the sales price towards the buyers closing costs and pre-paid items. In many cases, the Conventional 97 program is less expensive than an FHA mortgage. This is because the Conventional 97 program does not require an upfront mortgage insurance premium, and because it’s annual mortgage insurance rates are cheaper, too. Mortgage rates are often comparable. Personal gifts from family member, gifts or grants from a qualified entity, employer assistance, and Community Seconds® mortgages as defined in the Selling Guide are permitted for the 3% down payment. What is not permitted is contributions from interested parties such as the lender, realtor and seller.

Ready to get started on your journey to homeownshership? Call (919) 526-0183 or click here to start a secure application now.


Since relocating from Northern Michigan in 2007 I have lived in Garner (27529) with my wife Melanie and our four children. With personal production of 8MM in real estate sales across Southern Wake County I am considered to be a local market expert in the following communities: Garner (27529), Fuquay-Varina (27526), Holly-Springs (27540), Apex (27502), and Raleigh (27603, 27604, 27606, 27609, 27610)) which spans from downtown Raleigh to Willow Spring including Lake Wheeler. Call or email me, I’m here to help! Ricardo Cobos (919) 526-0183