There are a few options for zero down payment home loans. Learn about them here in the last installment of the ABCs of Mortgage.
Zero Down Payment Home Loans Exist?
Z is for zero percent down. Yes, that’s possible with a few different loans. VA loans, USDA loans and some FHA loans allow you to finance the entire loan without paying anything as a down payment, if eligible.
But How?!
The government wants as many people as possible to be able to buy a home. Let’s face it: homeownership is good for the economy! So to make it possible for more folks to own homes, there are programs to help those who might have difficulty putting together the traditional down payment of 20%. “What’s the catch?,” you ask. You may have to purchase an insurance premium, which will get factored into your monthly payments. While it may end up in a bit more that you’re paying each month, you won’t have to worry about several thousands upfront to invest in a home and start building equity.
Zero Down Payment Loans
The main loan options for a zero-down option are VA, USDA and FHA loans.
VA Loans
Yes, a VA loan is specifically for veterans. And if you are an eligible veteran, service member or family of a vet, you could have 100% financing* for a home loan, where you’d need no money for a down payment.