The credit crunch has hit everyone hard.
Banks have tightened up their purse strings.
The amazing Programs that brokers and lenders once threw out at anyone with a pulse have all but disappeared.
But does that mean that there is absolutely no way to get a mortgage without plopping down 20%? What happened to buying a house with no money down? Can it still be done? The answer is "yes.
" Zero down mortgages are still available, but there are some very specific qualifications to get them.
I have listed the three most common here for your convenience.
1.
Rural Development Mortgage.
- The Rural Development Mortgage is put out through the United States Department of Agriculture.
This loan program is so popular, that the program typically runs out of money by the end of it fiscal year.
This program is not limited to first time home buyers.
The loan process is initiated through an approved lender, and is subject to income guidelines and the property must be purchased in a designated rural area.
The surprising part of this loan is the types of properties that are eligible.
Eligible property types include existing homes, new construction, modular homes, Planned Unit Developments, eligible condominiums and even new manufactured homes.
Another nice perk of this program is that closing costs and property improvement costs can be factored into the loan.
Take a look at this program.
You might be surprised to find what the US Government considers "rural.
" 2.
VA - If you are a veteran of the United States armed forces, You will more than likely qualify for a VA loan.
VA loans are another zero down payment loan opportunity.
The loan does vary depending on type of service and if this is your first home loan or a subsequent home loan.
There is a loan funding fee that is rolled into the loan that runs from 2% to 3% depending on the previous qualifications.
For example: a veteran of the united States Air Force may pay 2.
15% loan funding fee for a first time home loan, whereas a veteran of the national guard may pay 2.
85% for the same loan.
3.
Navy Federal - If you are not a member of the military, but are a civilian employee of the government or a family member of Military personnel and belong to the Navy Federal Credit Union, you may qualify for a No Down Payment loan.
The Navy Federal Credit union is the largest credit union in the United states in both assets and membership.
They have a program for their qualified members that allows 100% financing of a primary home loan.
Like the VA, there is a small funding fee of about 1.
7% of the total loan amount.
The Navy Federal Credit Union offers a 15 year and a 30 year program.
So even though the housing market has taken a beating, there are options for a 0 down mortgage.
As with any mortgage decision, gather your information, form some questions and contact a mortgage professional to help you make an informed decision before purchasing.
It is in their best interest to help you.
Banks have tightened up their purse strings.
The amazing Programs that brokers and lenders once threw out at anyone with a pulse have all but disappeared.
But does that mean that there is absolutely no way to get a mortgage without plopping down 20%? What happened to buying a house with no money down? Can it still be done? The answer is "yes.
" Zero down mortgages are still available, but there are some very specific qualifications to get them.
I have listed the three most common here for your convenience.
1.
Rural Development Mortgage.
- The Rural Development Mortgage is put out through the United States Department of Agriculture.
This loan program is so popular, that the program typically runs out of money by the end of it fiscal year.
This program is not limited to first time home buyers.
The loan process is initiated through an approved lender, and is subject to income guidelines and the property must be purchased in a designated rural area.
The surprising part of this loan is the types of properties that are eligible.
Eligible property types include existing homes, new construction, modular homes, Planned Unit Developments, eligible condominiums and even new manufactured homes.
Another nice perk of this program is that closing costs and property improvement costs can be factored into the loan.
Take a look at this program.
You might be surprised to find what the US Government considers "rural.
" 2.
VA - If you are a veteran of the United States armed forces, You will more than likely qualify for a VA loan.
VA loans are another zero down payment loan opportunity.
The loan does vary depending on type of service and if this is your first home loan or a subsequent home loan.
There is a loan funding fee that is rolled into the loan that runs from 2% to 3% depending on the previous qualifications.
For example: a veteran of the united States Air Force may pay 2.
15% loan funding fee for a first time home loan, whereas a veteran of the national guard may pay 2.
85% for the same loan.
3.
Navy Federal - If you are not a member of the military, but are a civilian employee of the government or a family member of Military personnel and belong to the Navy Federal Credit Union, you may qualify for a No Down Payment loan.
The Navy Federal Credit union is the largest credit union in the United states in both assets and membership.
They have a program for their qualified members that allows 100% financing of a primary home loan.
Like the VA, there is a small funding fee of about 1.
7% of the total loan amount.
The Navy Federal Credit Union offers a 15 year and a 30 year program.
So even though the housing market has taken a beating, there are options for a 0 down mortgage.
As with any mortgage decision, gather your information, form some questions and contact a mortgage professional to help you make an informed decision before purchasing.
It is in their best interest to help you.
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