Almost zero down

If you do not qualify for the zero down payment options offered by GMAC Mortgage, there is another program that you should consider. Borrowers are required to pay almost nothing upfront. With a minimum cash requirement of just five hundred dollars, almost anyone can afford this offer.

Alternative conventional loans and FHA loans have zero down options, but many people don’t meet the strict qualification requirements that go along with those programs. To respond to the needs of such customers, GMAC Mortgage offers a similar program that differs slightly in two ways: you must have five hundred dollars for the down payment, and you must pay a somewhat higher interest rate. Those differences help GMAC Mortgage offset the risk involved with having less strict qualifying requirements.

You can choose between a fixed-rate or adjustable-rate mortgage. The fixed-rate version offers a steady interest rate that is never subject to change. You have the security of knowing that your monthly payment will never rise. From the outset, you can calculate exactly how much interest you will pay over the life of the loan.

Adjustable-rate mortgages offer less stability, but there is more potential for savings. The almost zero down mortgage comes with a seven-year introductory period. That means that you will have a low, fixed rate through the first seven years. After that, your interest rate could rise or fall, depending on the market. This choice can work particularly well for borrowers intending to move relatively quickly.

Both types of mortgage are great options for people who are having a hard time putting enough money together for a down payment.