What if I don’t have a big down payment?

What if I don’t have a big down payment?

One of the great mortgage myths is that you must have a large down payment to qualify for a mortgage loan. For many of us, especially first time homebuyers, a 20% down payment on their home mortgage is not realistic. While other lenders offer low down payment options, they often require extra insurance to protect the mortgage lender in case you default on your mortgage loan. This insurance is called private mortgage insurance (PMI) (link to FAQ on PMI).

At The Federal Savings Bank, we offer programs with down payments as low as 1.5% for qualified buyers, and we have many offerings that don’t require PMI (like piggy back loans and second mortgages).

Still have questions? Call us at 877.788.3520 or your TFSB banker directly if you have already established a relationship with one. If you are ready to apply, then let’s go!