How to Get Home Loans with Zero to No Down Payment?

1. How to Get Home Loans with Zero to No Down Payment? Are you interested in buying a home but don’t have money to spend on the down payment? Don’t worry! You can still attain ownership of your dream home. Down payment can be the biggest barrier to many homeowners in buying their home. Luckily, there are few no down payment home loan options that you may qualify for. Zero down payment home loan is a mortgage with no money down at closing. These type of mortgage programs may sound appealing to many repeat buyers and people who want to buy a home for the first time. However, not everyone is eligible and can qualify for a no down payment loan. Let us dive in to explore zero to no down payment mortgage options and navigate their features with eligibility criteria. VA Home Loan The VA loan is a no down payment mortgage option guaranteed by the U.S. Department of Veterans Affairs.

2. Eligibility– It is available for those who are a current or former member of the military and for certain members of the National Guard and Reserves. To qualify for the loan, you need a good credit score and an eligibility certificate from the VA. Insurance and Fee– VA loans do not require mortgage insurance, they only charge a one- time funding fee which may be as low as 1.25 percent or as high as 3.3 percent. For first- time home buyers, a 2.15 percent upfront fee is required. Credit Score– The credit score requirements depend upon the lender. Some lenders usually require a 620 credit score while some may allow a lower score. USDA Home Loan Also known as rural development loan, it is a housing program offered by the U.S Department of Agriculture at 100% financing. Eligibility– This type of no money down loan is designed to facilitate low or moderate- income borrowers for buying a home in eligible rural and suburban areas. The income limit of homebuyers is 115 percent or less of their area’s median income. Insurance and Fee– The USDA loan comes with no mortgage insurance and offers a 1 percent upfront guarantee fee and 0.35 percent annually that can be rolled into the loan amount. Credit Score– There is no minimum credit score requirement for a USDA loan, however, you may get a streamlined approval with a credit score of 640 or higher. This useful information will help you choose zero to no down payment home loans for buying a new home. Source: https://medium.com/@communitylendinggroup2727/how-to-get-home-loans- with-zero-to-no-down-payment-f536944f19a5