14 Nov The Gift of Home Ownership: Using a Gift as Your Mortgage Loan Down Payment
First time home buyers struggling to meet down payment requirements for their mortgage loans often find the underwriting standards and loan limits difficult and constraining when seeking a mortgage loan. These first time home buyers are often millennials who have had less time to save up for the necessary down payment costs. Mortgage loan down payments cover typically 20% of the home purchase value, a significant amount to amass, especially against surging and ballooning Florida home values.
Angel Oak Home Loans is a national mortgage lender focused on creating opportunities for home buyers. Angel Oak Home Loans offers a gift down payment program allowing for home buyers without the assets to pay for a down payment to obtain gift assistance from family and friends to use and fully pay for their home purchase down payment, allowing people to achieve their dream of homeownership.
The Angel Oak Home Loans gift down payment program is available for home buyers using the home as a primary residence. These traditional mortgage loans with gift down payment options can accommodate a loan up to $417,000 dollars. This is the same specification as our conventional mortgage loan program. Low credit scores are also accepted to the gift down payment mortgage loan program with a minimum FICO score of 620. The mortgage loan down payment can be 100% covered by another party, allowing you to fully realize the gift of homeownership without contributing any of the down payment yourself. In addition, the down payment can be as little as 3% of the purchase price for first time home buyers.
Conventional mortgage loans have numerous advantages for home buyers. As the gift down payment mortgage loan program follows the guidelines set by Fannie Mae and Freddie Mac, prospective home buyers can take confidence in solid loan limits and solid underwriting standards that secure their mortgage loan. Conventional mortgage loans are available as adjustable rate mortgage loans, known as ARMs, and fixed rate mortgage loans. These can be for the duration of 10 years, 15 years and 30 years. In addition, conventional mortgage loans can allow first time home buyers to purchase a home for as little as 3% down. This results in an astonishing 97% LTV, or loan-to-value, an opportunity only available to first time home buyers.