How to Buy a House With $0 Down Payment

Many would-be homebuyers wonder how much they’ll have to save to get a mortgage. Fortunately, gone are the days when you needed tens of thousands of dollars to buy a home - you don’t even need to have a 20% down payment today! In fact, there are ways you can buy a house with a $0 down payment. Keep reading to find out how!

Down Payment Assistance Programs

Homebuyer down payment assistance can help you buy your house without immediate cash. They include several State, Federal, and non-profit programs and are often for first-time homebuyers. Typically, the programs have income and credit history requirements, and some might require completion of a mortgage education course.

Ask Family or Friends to Help

Today, many mortgage lenders allow potential homebuyers to use gift funds from a family member, close friend, employer, or labor union as down payment. But you’ll need to produce a letter from the source of the gift to show that you aren’t required to pay the money back. 

Government-Backed No-Down-Payment Mortgage Options

There are two government-backed mortgages that allow you to buy a house without down payment:

  • VA Loans:

VA loans, guaranteed by the Department of Veteran Affairs, offer zero down payment mortgages to veterans or current service members and their spouses. While the loans don’t require a minimum down payment, you’ll have to pay a funding fee to cover the cost of foreclosure in the event you default on the mortgage. 

  • USDA Loans

These are backed by the U.S. Department of Agriculture and are intended for low- and moderate-income buyers in eligible rural areas. It also requires a guarantee fee to protect the mortgage lender in case of foreclosure. 

Essential Note: Even with a no-down-payment mortgage, you should factor in the closing costs such as title, origination, and insurance fees in your budget. 

Looking to buy a house? Contact the Jason Veenstra Team!

Coming up with the down payment can be a huge hurdle for people hoping to become homeowners. But buying a home with $0 down is more accessible than you think. For more information about buying a home without down payment and the entire homebuying process, contact the Jason Veenstra Team brokered by eXp Realty at 269-350-5514


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