While it’s ideal to have enough funds to put down on a home, it’s also possible to score a mortgage with no down payment.
A lot of people seem to think that buying a home is only for those who have plenty of money. It’s true that a lot of mortgage programs requires a certain amount of down payment. But it’s also important to stress out that there is a way to finally be a homeowner without having to put down a lot of money.
There are actually more than a few possibilities to get a mortgage without having to strain yourself financially. Keep in mind that you can obtain necessary information by researching and consulting lenders and experts to find out which possibility would work perfectly for you.
So what are the possibilities of buying a home with no down payment? Let’s count some of the ways.
Qualify for mortgage with 100% financing
In today’s real estate market, there are quite a few mortgage programs that offer zero down payment. While these are unique programs that have specific eligibility requirements, the odds of finding one that would work for you is actually good.
One of the most popular mortgage programs that require no down payment is the USDA loan. The qualifications for this loan is quite attainable for many interested home buyers but keep in mind that the USDA would only allow financing for properties within rural areas.
Another mortgage program that offers 100% financing in the market is the VA home loans. These are mortgages that have a very specific target market. In order to qualify, the borrower must be either be an eligible veteran, a military member, a military service personnel, reservists, or a National Guard.
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Receive gift funds
Whether from a family member, non-profit, church, employer, or other authorized or approved source, it’s possible to get gift funds to cover either down payment costs or closing costs.
One thing that you should keep in mind, though, is that if you’re planning one using gift funds to cover the costs, make sure to check in with your lender about what is allowed and what is not.
Get a second mortgage
Second mortgages are usually programs offered to help cover the upfront funds needed for your first mortgage. It would allow you to cover the cost of your down payment.
One option, for example, would be a program called Community Seconds. It’s a Fannie Mae sponsored program that helps you get additional funds to pay off either your down payment and/or your closing costs. Just make sure to check if you can qualify for one through your lender as well.
Apply for a down payment assistance
Sometimes, hearing about down payment assistance (DPA) programs sound too good to be true. But it is very much available to those who qualify. These grants are quite accessible if you just know where to look.
In fact, there are down payment assistance programs that are available in local and state housing authorities. Therefore, the best place to look for one is just within your area.
Also, there are programs that are of a nationwide scope. Other than that, mortgage DPAs can be from non-profit organizations. Finally, you can also ask your trusted lender where and how to qualify for one.
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