Finance Refinance

Getting a Mortgage Loan with No Down Payment Is Now a Stress Free Task

Written by Roy

Veteran Affairs department offers mortgage loans with no down payment with bad credit to current or retired military personnel

Planning to buy a house, but worried about the down payment? Your best bet is contact your lender for best home loans with no down payment.

There are some options that can help you get a mortgage with no down payment. For instance, VA loans offered by Veteran Affairs department. These are absolute no down payment loans with no requirement to pay any money upfront. These mortgage loans with no down payment with bad credit are available for current or retired military personnel with a funding fee of about 2.15% applicable for the first-time buyers, while for subsequent buyers it is 3.3%, depending on the military branch and the frequency the VA loans have been availed of. If you qualify for a VA loan, you can request funding fee to be rolled into the loan amount, which may be approved. These are the best home loans with no down payment for military personnel as they offer the best rates without a need for mortgage insurance.

The good neighbour next door program is aimed to help the community helpers such as firefighters, police officers, nurses, teachers, and so on. According to this program, qualifying for a HUD home helps you buy it at half the price. The down payment requirement is only $100. So, it is as close as getting a mortgage loan with no down payment. This program also allows you second mortgage purchase of an HUD home that has been foreclosed. You can save on the interest and payment if you select a property that has been approve on the HUD list.

USDA loans are available for homes in rural areas. This therefore, means exclusion of a large number of customers. If, however, you wish to avail of this you can get a mortgage with no down payment. With these loans, sellers have the ability to pay up to 6% of the closing costs and prepaids. With USDA loans, you do not need private mortgage insurance. As part of this state bond program, you only need to pay a one-time guarantee fee and the flexibility of paying the annual guarantee fee every month. But, when using bond money, there is a lock-in period before you can sell or rent the house.

The other programs that come close to getting a mortgage loan with no down payment are Home ready and FHA, apart from the option of seeking down payment assistance.

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