Are you ready for homeownership but lacking the funds? You may not need as much as you think.
If you’ve ever wondered “can you buy a house with no money down?” the answer is yes.
We’re going to show you how.
Can You Buy a House With No Money Down? Weighing Your Options
Twenty percent is typically what most people consider to be the amount needed for your dream home. While putting some money down is helpful in lowering your mortgage, putting down this amount of money is simply not realistic for many people.
On top of this, there is the home inspection to consider, homeowners’ insurance as well as closing costs. Tally that in and homeownership becomes unattainable for many.
Luckily, there are programs available to make owning a home within reach. There are specific loans targeted toward teachers and home loans for medical professionals.
Some of the most popular programs that require no down payment include:
The US Department of Agriculture created this loan for the encouragement of rural development. This is a 0% down payment option that is geared toward those with low to moderate-income.
Not only is there a 0% down payment but the mortgage insurance is lower than other programs, at 0.35%. You can roll closing costs or finance repairs into this loan, or you can choose to build your own home.
The USDA loan is ideal for those looking for flexibility and more options into the type of home they can purchase–from new to fixer-upper.
The VA loan is available to those who have served in the armed forces. This is another 0% down payment option. There is a funding fee of 2.3%, but buyers have the option of rolling this fee into the loan. If you’re a disabled veteran, this fee is waived altogether.
The VA loan is backed by the VA but is funded through traditional lenders. This means that while there is no credit score requirement for the VA loan, each lender has its own criteria, which can range from 580-620.
The Federal Housing Administration (FHA) offers a low down payment program geared toward those with low to moderate-income.
While there is a down payment of just 3.5%, you can pair this loan with programs for down payment assistance if you can’t afford it. You can even use gifted money toward your down payment and closing costs.
Qualification criteria for the FHA loan are also less restricted. If you have a credit score of at least 580 you may be eligible, as long as you can show a steady income and have a concrete employment history.
Make Your Dream of Homeownership a Reality
So, “can you buy a house with no money down”? Yes, and it may just be your ticket to homeownership.
These programs have made it possible for many Americans to get the home of their dreams. If you’re ready to purchase a home and don’t want to go broke doing so, consider one of the options above.
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