Zero money down home loan

Buying a home with no money down has become much harder to do than before the mortgage meltdown of 2007.  For example in the year of 2005 almost 50% of first time homebuyers obtained mortgage financing putting no money down on their home for a down payment. This number truly is remarkable and helps explain why the percentage of Americans buying homes vs. renting continued to grow each year.

Now nearly all of the zero down programs have gone away but not all of them.  The only 100% financing programs still available are VA and USDA Rural Housing and FHA with the use of local community grant money.

Not all 100% Financing can be accomplished with no money out of pocket. There are some costs to buying a home not incurred from the mortgage, such as home owner's insurance and property taxes which may need to be paid a year in advance.

It is even possible for you to buy a home with zero money out of pocket. A popular way to do this is to have the home seller pay your closing costs for you. This is known as "seller concessions" Most lenders allow the seller to contribute at least 3% of the purchase price toward your closing costs

Traditionally, 100% loans made through sub-prime lenders had much higher interest rates however, VA and USDA loans are comparable to conventional mortgage rates. 

In order to qualify for a VA, USDA or FHA with grant money from local governments you will need to have FICO scores of at least 620 or above and be able to prove income with paystubs and W2's.

If you would like more information on what program would be better for you fell free to contact us any time.