How to Purchase a Home with ZERO Down Payment
I think that we have all been the phase of telling our parents “just wait until I am 18 and I am out of here!”. But then we all grew up and found out how expensive living costs can be and maybe had some second thoughts. The stereotypical saying is that a buyer needs a full 20% down payment to even think about buying a home. But the truth is that is not the case. There are so many programs, special financing, and government assistance out there to greatly lower that price – if not completely cover the entire cost.
Our goal for this blog is to help you in your homeownership dreams! Owning a home is something really special. You will be able to create a space that is uniquely yours, without worrying about what the landlord is going to say or do! At the same time, building up equity instead of paying off somebody else’s mortgage.
So, let’s get to it – how can I access these dreams without having the bank fully loaded?
There are many homes that qualify for a 0 down payment using special financing and government loans, with indication from the seller that they accept this type of financing. If you are interested in find these homes, please reach out to our team. We are here to point you in the right direction and provide a list of qualifying homes for you. Raise your hand by filling out your information right on our website and providing the general price range and area you want to buy in.
Let’s talk a little more about the types of programs that are available to you. There are two major programs that require 0 down payment to buy a home. The first is a VA loan. The qualification for a VA loan is if the buyer has served in the US military. We connect you with resources to find out if you qualify. The other type of loan is an USDA loan. This of qualification for an USDA loan are based on area and census tract.
Even if you are not eligible for those types of financing, there could still be programs available to you. You may also qualify for an FHA loan. This loan has a typical down payment of 3.5%. But that down payment can be paid for with gifts, grants, and other government loans. There are also many programs statewide that lend up to 6% of the purchase price toward your down payment and closing costs. There are currently grants available that don’t even need to be paid back.
So, we’ve got the down payment covered, but you still may be worried about your credit score. The bank uses credit score to gauge a buyer’s ability to pay back their dues. The higher your credit score, the more the bank can trust you to make your monthly mortgage payments. BUT, you do not need an 800 credit score to qualify for these loans and programs we have described. It would be beneficial for you to sit down with a lender and see what you do qualify for. If you are not currently eligible your lender can give you practical steps to raise your score so that you are. This advice is completely free as well. Let's find out where you are financially today, so you can plan for your future.
Our team wants to see you become a homeowner. We want you to live in financial freedom in the comfortability in your own home. If you have any questions or just want to talk further about these programs, please reach out to use now. We have a team of experienced agents ready to help!