Zero Down Mortgage Programs

A zero down mortgage is common, and it could be because of the economy or the fact that most people stay in their homes an average of only 5-7 years before moving again.

Another reason could be home buyers are not putting down large down payments as our parents and grandparents did.

The average down payment to buy a house 20 years ago was 20%. Today a zero money down mortgage is very common.

No Money Down Home Loans

Simply put, a no down home loan is a mortgage for which you don’t put any money down when you are purchasing a new house.

In today’s market because of the numerous foreclosures in the United States finding a no down payment mortgage may be extremely difficult or nearly impossible unless you’re a veteran which makes you eligible for the VA loan– which almost never requires a down payment.

VA loans are a great option for veterans who want to buy a new home. Not only can a Veteran put zero down but VA loans get approved faster than any other type of zero down mortgage.

Most Veterans are not aware of the benefits or event that these types of no money down mortgage programs exist. So, if you know someone who has served in the military let them know!

If you haven’t served in the military you still have other options.

A popular choice for home buyers is the “low down payment mortgage offered by Federal Housing Administration mortgage insurance backed mortgage loan (FHA).

The FHA loan is a mortgage that's not only backed by the government, they only require buyers to put 3.5% of the purchase price as the down payment.

FHA loans also have more flexible guidelines which include lower credit score requirements. They are a great option for first-time home buyers wanting to buy a new home.

Another great option is a HomePath loan.

In order to be eligible for a HomePath loan you as the home buyer need to purchase a Fannie Mae-owned property.

This type of loan offers a low down payment of a minimum of 3%.

This loan has flexible mortgage terms like fixed-rate, adjustable rate or interest-only loans, no mortgage insurance (PMI) and no lender-requested appraisals.

HomePath is also offering closing cost assistance to buyers of 3.5% of the home value if the initial offer is submitted on or after April 11, 2011 and close by June 30, 2011.

You can visit the HomePath to see the thousands of homes that are eligible for HomePath loans programs.

Who Is a Good Candidate for a Zero Down Mortgage?

Today most first-time home buyers may not have enough saved up for a 20% down payment or might want to use the money they’ve saved up for other reasons like buying furniture or renovating their new home.

Some people may actually decide to use their savings instead as a big down payment to pay off high interest debt like credit cards since your mortgage interest is tax-deductible and credit card interest isn’t.

For whatever the reason VA, FHA and HomePath loans are a great option for many new home buyers.

I hope this information was helpful in your search for your new home!

Please let me know if you have any further questions by contacting me at:

Dario@Rental-Property-Investing.com

or by leaving a comment.

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