Can first time home buyers find mortgages without down payments? The answer is YES! There are loans available for first time home buyer loans with zero down. You may be able to get a mortgage for the price you are paying now in rent. The two types of loans that fit this description are USDA rural development loans and VA loans.
USDA Rural Development Loans
The USDA offers loans called FmHA loans for people who meet certain qualifications. FmHA or Farmer's Home Administration loans are for people that have a low to moderately low income level who want to purchase a home in a rural area. There are other conditions that must be met:
- The home must be in fairly good condition
- The home must be reasonably priced compared to other properties in the area
- The home must meet certain size restrictions
While there are many regulations that must be met in order to qualify, it can be done. If you want to purchase a home in the country and you have a modest income with very little savings, this may be the program for you.
If you have previous military service, you may qualify for first time home buyer loans with zero down. This program allows veterans who would not normally qualify for a traditional mortgage to be able to get the money needed to purchase a home.
There are some restrictions that must be met with this mortgage and their is a cap on the dollar amount that can be spent on a home. Prospective borrowers must also submit documentation in order to assess their eligibility for the program. Although it may require some effort to get a loan, a VA loan is well worth the trouble. This is a good way for veterans to be able to purchase their own homes with no money down.
If you'd like to learn more about the home buying process and what's available to you, download the "Free Kit for First Time Home Buyers" at the button below.