Zero Down Payment Options for First Time Home Buyers
The US real estate market is showing slow but definite signs of revival. For those with an eye on property, this is just the time to make a move. This is because as business picks up and the demand for property goes up, so will property prices and the requirements of lenders. Those who have never bought a house should take advantage of first time home buyer loans with zero down.
With these loans, the hurdle of saving up enough money to put down a deposit and to cover other costs such as closing and moving costs is removed. To secure such a loan, all an applicant has to have is stable income and a good credit rating of at least 620 - although some lenders might want a higher rating.
First time home buyer loans with zero down are available through several programs. One of them is for veterans who can get what is called a Veteran Affairs Loan. The plan has been available since World War II. It is an insurance program through which those who qualify can get loans for up to a specified amount. Most counties have a limit of $417,000 but higher limits are available where houses costs more.
Another program that avails first time home buyer loans with zero down are USDA rural development housing loans. It is available to buyers in specific parts of the country who are eligible for the loan which is availed through the US Department of Agriculture Rural Development housing loan. Though it was created for rural areas, it is available for some locations that are near towns. It is possible to check whether one is eligible for the loan on the USDA home loan website by entering a zip code, income bracket and the number of people in the household.
There are also state and local home buyer incentive programs that offer first time home buyer loans with zero down. Almost every county, state and other US local jurisdictions have such programs. They offer assistance in form of aid in paying the deposit, the closing costs, offering loans at lowered interest or a combination of these. Others offer a grant or interest free loan to cover the deposit or a big chunk of it.
As long as one you are certain that you can keep up the repayments, now is the time to take advantage of one of these facilities and become a home owner.
If you'd like to learn more about the process of buying your first home, we've put it all together in a "First Time Home Buyer Kit" for you. It's a short eBook that includes a look at some of the mortgage loan options available, as well as a glossary of industry terms. Get your free guide at the button below.
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