When it comes to owning a home, making a down payment can be very challenging. However, there are some instances you can follow in order to purchase a home with zero down payment according to our expert gay realtor.
USDA Rural Housing Loans
For people with a lower income, rural housing programs may allow them to buy a house without making any down payment. Those whose income doesn’t go beyond the local area median income (AMI) may qualify for loan guarantee. Make sure your personal situation and the property you are interested in falls under the USDA guidelines. (http://www.rurdev.usda.gov/HSF-About_Guaranteed_Loans.html)
VA Loans for Veterans
If you have served in the National Guard or in military, then you are eligible for a ZERO down VA mortgage. The lender will request your COE (Certificate of Eligibility), veterans may obtain this on-line. The VA guarantees your home purchase to the lender. A funding fee maybe included in your total loan amount for the guaranty.
Down Payment Assistance
This can be furnished by charitable foundations, local governments and other organizations. This cannot be supplied by any anyone who has other interests in the finances of the home sale e.g. a real estate agent, the mortgage broker or the property owner.
Most of such programs include guidelines and are limited only for first-time home buyers, buying their primary residences. Some will have you go through a homebuyer education course first. This is more of a silent second mortgage that won’t require any payments. They may only ask for a refund once you sell the home, or it could be waived if you stay in the home for x amount of years.
Good Neighbor Next Door Program
Teachers, firefighters/emergency medical technicians and law enforcement officers who qualify for the program can purchase any HUD Home at a 50% discount. On the other hand if you use an FHA loan to finance your home, they will only require a down payment of just $100. The program provides a payment-free and interest-free second mortgage for 50% of the total homes value. The second mortgage balance is forgiven if you live in the home for three years or longer.
FHA Home Loans
FHA mortgages only require a down payment of 3.5%. Home buyers can get it from secured personal loans, employers, friends, relatives and other organizations.
Lease Option
This is part of a rental agreement. With the lease option deal, the renters can lease the house for a planned period of time, with an option to buy the home at some future date. This gives the buyer time to save for a down payment, while locking in today’s housing prices. You can arrange and secure commercial leases through a real estate lawyer with your real estate agent.
Any of the top gay real estate agents at GayRealEstate.com will be happy to provide you a free consultation to discuss your housing and financing needs. Just review the profiles of the agents in the city you’re considering, and contact them today! No cost or obligation.