How to Buy a Home with No Down Payment?

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Lots of people are involved in the process of home buying and many of them search for the opportunities to buy it without money down.

Nowadays zero-down loans are offered by a few lenders. You can also apply for a special program that allows you to make a zero down payment or a minimal one. In most cases you are required to have good credit score and stable income. Government offers the following zero-down programs:

  • VA loans: Veterans, current members of the military with their spouses can apply for VA mortgages. They require no down payment and no mortgage insurance, but a funding fee can be added to the loan.
  • USDA Rural Development loans: They are offered to borrowers who meet income and credit requirements. Also, the chosen property must be located within a special area designed as eligible for no-down-payment mortgages.
  • Local and state homebuyer programs: These programs are created to encourage homeownership. They have definite income limitations and you are required to take a home-buyer class.
  • You can also search for other programs that offer a low down payment. Mind that you will have definite requirements to get a no-down-payment mortgage.