How To Buy a House with No Down Payment
There are several options out there to help you buy a home, even if you don't have thousands for a down payment. The following loan programs may differ based on location and availability. Contact me to speak with a lender in your area.
1. Conventional loan using Movement Mortgage's MAP program
This is an incredible program!!
If you qualify, M.A.P. may be able to help you with
Up to 3% of the sales price as a grant that does not need to be repaid
Allowance for seller or other interested party contributions of up to 4% toward closing costs
Check out their website here and ask me for a connection with a Movement loan office near you!
2.. USDA loan: Typically only available in more rural areas, this loan allows 100% financing. A few key points:
Loan value must not exceed appraised tax value
Only low to moderate income buyers are eligible
Must meet credit requirements
Fixed 30 year interest rates apply
"Qualifying ratios are 29% for housing costs and 41% for total debt." -USDA.gov This means your housing expenses cannot be more than 29% of your income, and total debt (think student loans) may not exceed 41% of your income.
3. FHA loan: This is a mortgage "insured by the Federal Housing Administration" -Bankrate.com That means they protect the bank if you cannot follow through with the loan.
3.5% down payment
Minimum credit scores apply
The FHA allows sellers to pay for the buyer's closing costs, this means:
Some lenders will pay for your closing costs, but it may come as an increase to your interest rate
Some builders offer to pay your closing costs as an incentive to buy with them
"Because the FHA is not a lender, but rather an insurance fund, borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA)"-Bankrate.com
4. VA loan: Available for Veterans and their families
No down payment
No mortgage insurance
For primary residences only
Buying or selling a home? I work in the greater Charlotte, NC area and would love to work with you! Not in the area? Let me connect you with a great Realtor near you!
