Zero Down Home Mortgage Loans Back by Popular Demand


Just a few years ago no money down mortgages were being blacklisted by banks across the country. Today we are seeing new opportunities arise with a combination of aggressive lending and home buying grants that aid qualified borrowers with down-payment assistance.

After a number of significant guideline changes by underwriters, the zero down home loan program is making quite a comeback with first time house buyers and military borrowers.

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Buying a home is something that millions of Americans dream of every day. And when that dream finally becomes a reality, it's something to celebrate.

But of course, getting there often takes considerable effort. Because of the large price of a house, it's something that you have to qualify for.

Things like your income and your credit have a very direct impact on your ability to secure a loan, but another factor is at play as well, a down payment. A down payment is often required due to the fact that it shows lenders that you're serious about owning a home and not just expecting to get handed the keys without any effort at all. Many lenders require as much as ten percent down, sometimes more.

However, it's possible to get a home loan with no down payment at all, and the increase in zero down mortgages and low down payments means that you have more chances of getting a loan than you might have thought.

Here's a look at some of the key reasons that zero down home loans are making a comeback.

  • In most cases, the key to getting a zero down home loan is simple; have a great credit score. But that's not always the deciding factor. Often, lenders look at income, credit history, and more in order to determine what your options are. But as lending requirements begin to lessen in restrictions, it becomes easier to get the loan you want without having to pay any money down.
  • For many, looking at some of the home buying grants available in some states is well worth doing and a key reason why down payments have fallen to nothing. These down payment assistance programs are backed by the government and will often award qualifying applicants with the money needed to make a down payment, and you don't even have to repay the sum in many cases. These grants aren't always available, but they're well worth looking into.
  • 3% down loans are also growing in number, and while they're not a zero down option exactly, combining them with the grants mentioned above means that it's much more likely you can avoid having any kind of down payment responsibility at all.
  • There are also other government programs offered that could help waive down payment fees. Things like your income, your minority status, and whether or not you're buying your first home all come into play when receiving these loans and grants. The key is to look into all of your options. Ask your lender if you are eligible for down-payment assistance for zero down house loan programs that are insured by the FHA.

If you're serious about buying a home, it's important to remember that you have a lot of different paths you can take. Pay attention to the various methods of getting a low or zero down payment loan, or for getting assistance with your down payments. If you'll do this, you should be able to get the home loan needed for the home of your dreams without having to pay a huge amount initially as a down payment. It's well worth looking into, and could surprise you.