No and Low Down Payment
Loan Programs

"FM Lending is a recognized and approved lending institution for the Federal Housing Commission"

For more information of any of our Government Loan Programs, click below:

No Down Payment Options

USDA

• Zero Down Payment (100% Financing)
• No monthly mortgage insurance
• 2% Guarantee Fee financed
• Income Limits
• Property must be located in a rural designated area
• Competitive Rates
• Seller can pay closing costs

VA - Veterans (Active Duty and Non-Active Duty) and Reservists

• Zero Down Payment
• No Income Limits
• Competitive Interest Rates
• Loan Amount up to$417,000
• No monthly mortgage insurance
• VA Funding Fee financed

Low Down Payment Options

FHA

• 3% Down Payment (3.5% as of 1/1/09)
• Gift Funds Allowed from a relative
• Competitive Interest Rate (similar to conventional interest rates)
• Seller can pay closing costs (up to 6%)
• Appraisal, processing and closing similar to a conventional loan 580 minimum credit score
• No income limits

North Carolina Housing Finance Agency

• 3% Down Payment
• Below Market Interest Rates
• 1st Time Homebuyer Program
• Reduced Mortgage Insurance Premium
• Income and Sales Price Limits

5% down (conventional)

• 5% down payment from borrower’s own funds
• No income or sales price limits
• Seller can pay up to 3% in closing costs
• No geographical restrictions
• Loan amount up to $417,000

Low Mortgage Payment Options

Fully Amortizing ARMs

• Provides lower monthly payment at the beginning of the loan
• Initial fixed interest rate period (1, 3, 5, 7, or 10 years)
• Interest rate and payment adjust annually after fixed period
• Interest rate adjustments are capped annually and for the life of the loan
• Down payments as little as 5%
• Great option for borrowers planning to live in home for just a few years

Interest Only

• Monthly payment is interest only which provides a lower monthly payment option
• Interest Only ARM options have an upfront period where the interest rate is fixed and interest rate adjustment caps annually and for the life of the loan
• Interest Only fixed rate option available
• Great option for borrowers earning commission income or periodic bonuses who want a low monthly payment with the flexibility of paying larger amounts of principal periodically

Temporary Buydown

• Up to three years with a below market interest rate
• Lower initial payments for first few years
• After the buydown period, the interest rate is fixed and principal and interest payment won’t change
• Buydown cost can be paid by the seller
• Great option for borrowers whose income will be increasing over the first couple of years of the mortgage

Please note:  All programs are for Purchase of Primary Residence only