People often think they need a down payment of 20% to secure a home loan. The truth is, there are several loan programs that allow borrowers to make a down payment of as little as 0%! Let’s walk through some of these options together.
Veterans Administration (VA) 0% down
- 100% financing for eligible veterans and military personnel
- Assistance with borrower debt and closing costs is permitted
- Limited closing costs
*VA loans do not require mortgage insurance, but are subject to an upfront funding fee paid to the VA based on loan value
U.S Department of Agricultural (USDA) 0% down
- No down payment is required, flexible credit and underwriting terms
- Not limited to first time homebuyers
- Property must be in an eligible area
Federal Housing Administration (FHA) 3.5% down
- Down payment and other gift funds permitted
- Flexible credit review
- Fixed rates
Also Available:
- Conventional financing with down payment as low as 3%
- State specific down payment assistance programs
- Seller assistance with closing costs on some programs