Many have heard of these no down payment home loan products. Perhaps you would like to get one too for your home purchase. But you are wondering, you have heard the requirements are hard to meet, so what are the requirements for this type of loan? This article will explain.
Many have heard of these no down payment home loan products. Perhaps you would like to get one too for your home purchase. But you are wondering, you have heard the requirements are hard to meet, so what are the requirements for this type of loan?
It's not that the requirements are so hard, but that each type of loan product has usually a unique requirement that not all applicants will be able to meet.
No Down Payment Home Loan Requirements
Now take the USDA Rural Loan Product, one requirement is your income can
only be 115 percent of the median income for the area you want to buy
the home in. You must be able to afford a mortgage payment with taxes
and insurance and have a need for adequate housing. In other words,
where you are living is not adequate for the size family you have. You
also have to have a credit history that shows you are a good payer of
your bills. The other unique requirement is the home cannot be in the
city. It must be in a area that meets the USDA location requirements. So
not every home purchase will fit into this type of loan product.
The good thing there is no down payment required and no private mortgage
insurance. The other advantage is they are flexible on credit scores
and they have 30 year fixed rates.
VA Home loans is another loan product that has zero down payment
requirements. The requirements are the same as for most loans except you
must be a veteran to qualify. That is the unique qualifier for this
loan and not everyone who wants to buy a home will be a veteran. But if
you are, you will find some great loan products to go after.
Here is another great no down payment home loan product, VA Vendee
Loans. This is a VA loan but you do not have to be a veteran to qualify.
The unique qualifier for this one is the home has to be a VA home
foreclosure, otherwise you cannot use this loan product. You must plan
to occupy the home and not intend to use it for investment purposes. It
is a wonderful product if the home you want to buy is a VA foreclosure.
The difficult part is you have to find those type of foreclosures.
The nice thing about this loan product is it is not credit score driven.
But they will want to know if your income is high enough to make the
loan payments. So they will have to prove you have the income to qualify
and show you have been employed for two years.
If there is not a no down payment home loan product that fits your particular needs, you can check into the awesome down payment assistance programs out there. But if you do meet the unique qualifiers of the above mentioned home loans it would be worth your while to investigate those programs. So dig in and get started and see if you qualify for a no down payment home loan!
Jeffrey Ragan has several years of experience helping people reach their goals and wants to help you learn more about zero down home loans and other helpful information on their website, First-Time-Home-Buyer-Solutions.com.
