With zero-down mortgage loans, you could be a homeowner sooner than you thought possible.
USDA loans are for low-to-moderate income homebuyers and offer 100% financing. This program is also known as the USDA Rural Development Guaranteed Housing Loan Program, but don’t let the term “rural” discourage you. This type of loan is available in many suburban areas as well. In general, USDA borrowers can’t earn more than 115 percent of the median income for the area where they intend to buy. Learn the advantages of financing a home with a USDA loan or check your USDA eligibility area.
VA loans provide zero-down payment options to eligible members of the U.S. military and surviving spouses. These government-insured loans remove many of the typical up-front and ongoing costs of mortgage loans. In addition to military mortgage benefits such as low credit score and flexible income requirements, they don’t require private mortgage insurance (PMI).
If you don’t meet the qualifications for a USDA or VA loan, you may still reduce your out-of-pocket down payment costs by taking advantage of down payment assistance (DPA) programs. Eligibility is most commonly based on income, with assistance provided in the form of a loan or grant that’s sometimes forgiven over time.