Qualifying For a Low Down Payment Loan

To be considered for a low down payment loan, you generally need to have:

* sufficient income to support the monthly mortgage payment

* enough cash to cover the down payment

* sufficient cash to cover normal closing costs and related expenses (explained below)

* a good credit background that indicates your payment history or "willingness to pay"

* sufficient appraisal value, which shows the house is at least equal to the purchase price

* in some instances, a cash reserve equivalent to two monthly mortgage payments

Closing costs, or settlement costs, are paid when the home buyer and the seller meet to exchange the necessary papers for the house to be legally transferred. On the average, closing costs run approximately 2% to 3% of the house price. This percentage may vary, depending on where you live.