Zero Down Loans

In most cities, borrowers are not able to find zero down loans and will probably be required to put a down payment of 3.5 to 20% of the purchase price, however in some cases it is still possible to get a zero down payment loan. After all, these type of loans such as the 80/20 piggyback loan were very popular during the boom years. Nevertheless, everybody still wants to know "how to buy a home with zero down", so review the choices below as to their availability.

VA Home Loan - 100% Financing

There is 100% financing available if you're an eligible veteran of the armed forces or military, then the possibility of being approved for a no money-down loan are improved because of the VA loan. Also, credit scores for borrowers applying with the VA are not as strict as conventional loans as you can get by with a 620 credit score, but always look for ways to raise your credit score when possible.

Zero down Home Loans - 100% Financing Home Loans - Zero Down Mortgage

Department of Agriculture (USDA): No Money Down

The mortgage guarantee program from the Department of Agriculture's Rural Development (USDA) has been extremely popular as its funds were depleted in the early part of 2010. The loans should be available again in later 2010. The Rural Development loans are not only restricted to just farmland, they extend into areas considered rural which residents actually consider to be more suburban than rural. Apart from the geographical restrictions, the USDA program has limitations on income for the applying household. The loan program is aimed at first-time homebuyers, but some borrowers are approved on an exception basis who are not 1st-time buyers. There is no requirement for mortgage insurance as the USDA mortgage is from a bank. As an alternative, the USDA asseses a 2-percent guarantee expense that banks are able to put into the new loan.


»» Review more loan options below. Only VA mortgages offer "Zero Down" loans, currently. FHA loans offer borrowers as little as 3.5% down payment. Both programs require full income and employment documentation. Approval is subject to credit, income and employment underwriting approval. Not all borrowers will be approved by the lender. Loan programs and guidelines subject to change.