If you are thinking you can’t afford to buy a home because you don’t have the cash for a down payment, think again. Today, there are several loan programs available to first-time home buyers that make it possible to buy a home without a cash down payment. (You qualify as a first-time homebuyer if you have not owned a home in the past three years. )
USDA Loan Programs
The U.S. Department of Agriculture (USDA) offers several mortgage programs designed to help first-time home buyers living in rural areas to purchase a home with no or low down payments.
The Single Family Housing Direct Loan Program offers low- and very-low-income applicants payment assistance to reduce the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
To qualify for a Single Family Direct Home Loan, you must have an adjusted income that is at or below the applicable low-income limit for the area where the house is located and you must demonstrate a willingness and ability to repay debt. To see if you qualify for a USDA mortgage, you need to speak with one of USDA”s approved lenders listed here:
For more information on the USDA’s direct home loan program, visit:
To see if a property you want to buy is eligible for USDA mortgage assistance, visit
Veteran Loan Programs
If you are a U.S. veteran, you could qualify for a no-down-payment mortgage guaranteed by The U.S. Department of Veterans Affairs (formerly the Veterans Administration) These mortgages are originated by private lenders the VA guarantees and do not require mortgage insurance. The borrower must pay a funding fee, which can be rolled into the loan amount.
The VA funding fee varies, depending on whether the veteran served in the regular military or in the Reserves or National Guard, and whether it’s the veteran’s first VA loan or a subsequent one. The funding fee can be as low as 2.15 percent or as high as 3.3 percent.
For more information about VA No Down Payment Loan Programs, visit:
Navy Federal Credit Union
The Navy Federal Credit Union is the nation’s largest credit union in assets and membership. If you currently serve in the military or are a military civilian employee, you can qualify to join the Navy Federal Credit Union and then apply for 100 percent financing to buy a primary home.
The credit union’s Home Buyer Choice Program offers 100% no down payment financing with no private insurance required. For more information visit:
Need Help With Your Home Purchase?
The real estate professionals at Iron Country Realty can help you find the perfect starter home or move-up home and connect you with mortgage lenders who can help you locate and qualify for low- or no-cost mortgage programs.
Call or visit Iron Country Realty today. Phone: (218) 254-7101, 213 W. Lake Street, Chisholm MN.