Some people are put off from buying a home because they have little or no money to cover the usual 20 percent down payment requirement. But can you buy a home with no down payment required? The answer is yes. Recent reports even say there are now more loans available for homebuyers looking to acquire a house with little money.
The Detroit News listed three available options of home loans with no down payment. According to the report, qualified veterans can avail of a zero-down payment home loan from Veteran Affairs. The VA guarantees the loan which the private lenders originate and the borrower only pays a funding fee between 2.15 to 3.3 percent that can be deducted from the loan amount. There is no mortgage insurance, however.
Another zero-down payment loan is from Navy Federal Credit Union. The loan is available to qualified members looking into purchasing a prime home. Navy Federal offers 100 percent financing to members of the military, some civilian employees of the military and U.S. Department of Defense, and their family members. The borrower also pays a funding fee of 1.75 percent.
The U.S. Department of Agriculture also offers a zero-down home loan via its Rural Development mortgage guarantee program. The USDA's program is intended primarily for first-time homebuyers, with some exceptions, and looks into the geographical limits and household income. Similar to VA's loan, there is no mortgage insurance and the borrower pays a guarantee fee of 2 percent upon approval which can be rolled out into the loan amount and an annual guarantee fee of 5 percent of the loan balance.
Clare Drage and The Motley Fool also listed some helpful tips on how you can still buy a home even if you have little or no money to put up a down payment.
