Do you and your family need a bigger and more permanent space? Are you tired of dealing with landlords and not being able to do what you want with your home?
Owning a home comes with a lot of freedoms and is a good financial investment. For some people buying their own home may feel like a far off dream.
However, there are ways to get a loan – even without a down payment!
Don’t let your dream of owning your own home die – in these three-part series we will go over loan options you may not know about, and today we share with you how to get great home loan rates with no money down.
Types of No Money Down Loan
If you need a loan but don’t have any money to put down, don’t fret! You may still be able to get great home loan rates. There are a few options for loans that require no down payments.
Before you apply for a mortgage loan, we are going to go over USDA loans and VA loans to give you a better picture on what they are and who qualifies for these types of home loans.
USDA Loans
USDA loans are a great no down payment type of loan that can be very beneficial for those who qualify.
“ USDA loan is a loan backed by the United States Department of Agriculture to encourage development in rural and suburban areas. You can get a USDA loan with $0 down and lower fees than other types of loans.
Both you and your home must meet a few criteria to qualify for a USDA loan. First, your home must be in a rural or suburban area. Check out the USDA’s map of eligible areas to find out if your home qualifies. On this map, anywhere outside of an orange zone qualifies as a rural area. In addition, your home cannot be a working farm – it must be a single-family unit and you must live in the home as your primary residence.”
Talk to your mortgage company to see if you may apply for a USDA loan.
VA Loans
VA loans are for those who have served or are serving in the U.S. military.
According to Veterans United, here are some factors that may make you eligible for a VA loan:
- “You have served 90 consecutive days of active service during wartime, OR
- You have served 181 days of active service during peacetime, OR
- You have 6 years of service in the National Guard or Reserves, OR
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.”
Those who qualify for this type of loan will be able to get a zero dollar down mortgage from private lenders that are backed by the Veterans Affair. With this money the borrower can buy property for a primary residence.
And if you don’t qualify for one of these loan types, don’t stress. In Part 2 of this series, we will discuss more options. Stay tuned!