No Money Down Home Loans

No money down home loans still exist, in fact you still have three different options when it come to these loans. We will discuss these three options in this quick guide including the basics of what you need to know to qualify.

Before we get into these loans here are some basics that you should know and take into consideration. For the most part lenders will require that you have a minimum of a 620 credit score. If you do not have any credit what so ever you can build credit with alternative sources such as rent history and utilities.

You can not have had a bankruptcy or foreclosure within the last 2 years. There may be exceptions to this but they happen rarely.

Your credit history must have been clean for the last 12 months. In other words no late payments, collections, judgments, or late rent payments.

All of these loans are 30 year fixed loans with no type of pre-payment penalty. However, there are other options as well such as adjustable rate mortgages and shorter terms.

The seller can pay up to 6% of the purchase price towards all of your closing costs including inspections and appraisals. This is an excellent feature as you need none of your own money to buy a home. The 6% is almost always enough to cover these costs.

The most popular of the no money down home loans is the USDA Rural Development loan. The rural development loan is administered through the United State Department of Agriculture. As you might have guessed this loan will require that you buy a home that is in a rural area, the good news is that over 90% of the US is rural.

This nothing down loan has one more restriction to it other than where you must buy a

home. Your household income must also be at or below the household limits for the county in which you wish to purchase the home. This limit is also based on family size.

For example in the Bend Oregon area a family of 1 to 4 can have a maximum income of $73,600 and a family of 5 or more can have a maximum income of $97,150. There are exceptions to this, mainly being if you pay for child care or have adult parents living with you. The costs of care and daycare can be used to reduce your overall household income.

The second most popular of the no money down loans is the VA loan. But you must be an honorably discharged veteran or active duty to qualify. The spouses of veterans who have passed away are also eligible for this loan.

Finally is the FHA loan. While this is not a no money down loan, it might as well be. If you buy a home that HUD currently owns, and there are many available, you will only need $100 down.

This loan will also allow you to borrow up to an extra $5,000 to cover repairs that need to be done to the home which also includes buying energy efficient appliances.

As you can see there are plenty of no money down loans still available. Now it is up to you to take action and get the process of buying a home started.