The Dream is not Dead for a No Down Payment First Time Home Buyer
If you're a no down payment first time home buyer, you may think all hope is lost. That's actually not the case. In fact, any home buyer has the chance to possibly buy a home with 100% financing. Zero down mortgages do exist, and some of them actually perform quite well with few foreclosures. In other words, a low (or no) down payment doesn't automatically mean it's a scam or a bad mortgage loan.
USDA Rural Development
It may sound like a loan for the farm, but USDA Rural Development is not for farmers. In fact, RD as it's known often excludes homes with barns, especially working farms. Instead, under the Guaranteed Loan program, the USDA guarantees loans made by private sector lenders like AmeriFirst for home buyers like you.
Under the terms of the program, you may borrow up to 102% of the appraised value of the home, which means it's a great option for the no down payment first time home buyer. The home must meet location requirements set up by the USDA. These are non-urban areas, but often include many villages and small towns near bigger cities.
VA Mortgage Loan
If you have military service you're also eligible for the VA mortgage as a no down payment first time home buyer. In fact the VA loan is a great first home mortgage option. The U.S. Department of Veteran Affairs guarantees this mortgage. Lenders make the loans to eligible military veterans to buy, build or refinance a mortgage.
You can also use the VA mortgage loan for energy-saving improvement (approved by the lender and VA) of a home. VA loans share similar eligibility requirements as FHA loans, often with lower closing costs, and more liberal terms (usually without requiring a down payment) and even negotiable interest rates. If you qualify, the VA will issue a certificate of eligibility that you can provide a lender when making application for your loan.
Low Down Payment Options
If you have even a little hope of a down payment, you may want to also consider low down payment options like HomePath Mortgage or FHA loans. Both of these options require about 3% of the purchase price as a down payment. The great thing is that you may end up finding homes priced low in each of these categories, which would mean that even with a down payment requirement, you might be able to afford the cash needed.
Learn more about these no down payment first time home buyer choices and other home buying options available to you with "The Only Mortgage Loan Options Guide You Need." The free guide covers 100% financing and low down payment options, plus more.
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