3 Mortgage Programs That Offer No Money Down
Posted by Eric Skates on
The number one factor that prevents most non-homeowners back from applying for a home loan, is a myth.
The myth is that you must have 20% or more to put down on your home.
That is simply not true.
With different kinds of loans, comes the opportunity to place little to no money down and your opportunity at home ownership.
Here are 3 options that may allow you to buy a home with no down payment:
First-time home buyer down-payment assistance programs.
FHA loans are popular among first-time buyers, because borrowers have the options to put no money down, if they have someone willing to gift them the money for the down payment. You can also look for programs that offer first-time homebuyer grants or down-payment assistance programs. You can look on the HUD website to find the options available in your state.
Most veterans can qualify for a VA loan, you should check with your local VA office to be sure you meet the requirements. VA loans offer 100% financing, so you need no money down. The VA does not require mortgage insurance and normally the only cost involved is the VA funding fee, a one-time charge that is 2.15% of the loan amount. There are credit restrictions, so check with your lender for details. You can see if you qualify for a certificate of eligibility here.
When most people think rural, they think farms and cattle, but what land? You can use a USDA loan to purchase land to build your new home and a farm if you want. USDA loans are designed to help development in rural areas. The USDA rural development loan is a zero-down mortgage for low-to-moderate income families. USDA loans come with mortgage insurance premium that is much lower than any other type of mortgage available. Check the USDA eligibility map to see if your address qualifies.
You can always find more information about home ownership on the Equity Prime Mortgage website and you can download our step-by step guide to homeownership here.