Do you have your heart set on buying a new home, but you’re worried because you don’t have much cash for a downpayment?
Or perhaps you just don’t want to empty your savings account to buy your house.
At first, this may seem discouraging, but thankfully there are loans that exist that will help you purchase your dream home with little to no money down!
Today, Golden Eagle Mortgage wants to give you some advice on how to buy a home in 2020 with no money down.
What Is A Type Of Loan You Can Get With No Money Down?
Although there are a few types of loans that require little to no money down, some are better than others.
USDA Loans are a great option when you don’t want to put any money down on a home. A USDA loan is a no down payment, and low-interest mortgage loan.
This type of loan has helped many people to be able to buy a house with no money down.
However, it is only available for suburban or rural homebuyers who meet the USDA loan requirements.
Your definition of rural or suburban may be different from the USDA’s so before you disqualify yourself, you should go to this website to check your eligibility.
What Are The USDA Loan Requirements?
You may be wondering if you meet the USDA loan requirements.
According to Lending Tree, to acquire a USDA loan you need to meet the following criteria:
- Because these programs are intended for low- and moderate-income buyers, there are the minimum and maximum income limits, based on your location and family size.
To see if you qualify, use the USDA Income and Property Eligibility Site, or view and download the established limits for the direct program and the guaranteed program.
- Both the buyer and co-buyer, if applicable, must plan to reside at the property.
- Prospective buyers must prove their financial capacity to handle the loan. “The core requirement is that applicants be employed at least 24 months before the date of the application,” said Steven Lacoste, a state office loan specialist for the USDA.
In addition, the minimum credit score to get the loan is 640, although Lacoste says most lenders in the guaranteed program look for a score of at least 680 to ensure the loan will close. Applicants that don’t meet these criteria will need to provide alternative documentation.
- Buyers in the direct program must attend a homebuyer education course.
- You must be a U.S. citizen, U.S. non-citizen national or qualified alien.
- You must have the legal capacity to incur the loan obligation and not have been suspended or debarred from participation in federal programs.
- You have to demonstrate the willingness to meet credit obligations in a timely manner.
- You are required to purchase a property that meets all program criteria.
How To Know If A House Has USDA Property Eligibility
The USDA Income and Property Eligibility website is the best way to check out different properties that meet the USDA loan requirements.
Simply use this website and discover what amazing homes you can buy with a no down payment USDA mortgage loan.