No Money Down Loan
Many Americans think that in order to buy a home, they would need to put at least 20% of the purchase price down for a down payment, not 0% or no money down. For example, if they want to buy a home with a $100,000 price tag, they would need to put down at least $20,000. I don’t know about them, but we certainly don’t have $20,000 lying around. Yet it is possible to save up for it over time. However, how long would it take for us to save up that much? Since it’s not that easy to come up with $20,000 overnight, or even in a year or two, the requirement for a down payment has drastically reduced. There are many loan programs out there that require as little as 3.5% of the purchase price as the down payment. Did you know that there are a few loan programs that have no down payment as a requirement? What loan programs offer something this crazy and we’ve never heard of?
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VA loans
VA loans are guaranteed by the U.S. Department of Veterans Affairs (VA) and require no down payment at all. The other plus side of this loan is that they do not require their borrowers to carry mortgage insurance as well. However, the downside of this loan is that they are very unpopular to many sellers, especially if you want to buy a home in poor condition. The VA standards are stricter than the average non VA loan because they want you to find a home in good shape. Also, this loan is only available to anyone who has served in the military as well as their surviving spouses.
Check out our video on VA loans here:
What is a VA Loan?
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USDA loans
USDA loans are mortgages that are backed by the U.S. Department of Agriculture and are part of the USDA Rural Development Guaranteed Housing Loan program. Unlike a VA loan, USDA loans are available to everyone. One of the requirements of this loan is what location you are looking to be in. The property must be in a suburban or rural area, which means that you are restricted in a geographical area. You also must purchase a single family home that will occupied by you, and if you do not put down a down payment, you will be required to pay mortgage insurance as well.
If you are first time home buyer looking for no down payment, visit our Mortgages For Champions web site and take a look to see if you qualify for any of the loans offered. For more information, contact a licensed mortgage professional at 973-577-7008.