No Money Down Financing Options – USDA Loans & VA Mortgages
There are are two prominent 100% financing solutions in today’s marketplace. The first are USDA rural housing loans which are geared toward helping lower income borrowers in rural communities purchase real and rehabilitate residential properties. These loans are made available through the Single Family Housing Guaranteed Loan program which is administered by the United States Department of Agriculture and Rural Development.
With USDA Section 502 loans there is no down payment required and the borrower can borrow up to 100% of the appraised value of the home. Plus, there are no monthly mortgage insurance payments. These loans do have income limits which can be researched on USDA’s web site. You can also find out if a property is in a USDA eligible area on their site. There are plenty of mortgage lenders and brokers out there who can assist you with USDA loans but you’ll likely want to work with someone who has worked on UDSA mortgages in the past as they do require a solid knowledge of the product.
A second no money down mortgage solution is VA financing. VA mortgages are designed to help active duty servicemen and women and Armed Services veterans purchase and refinance residential properties with little to no money out of pocket. As with USDA financing, we recommend that borrowers ask potential mortgage professionals about their past experience with VA loans before selecting a financing outlet.