The largest hurdle that home buyers face is the increasing minimum down payment required to get a loan. FHA loans require a minimum of 3.5% while conventional loans can vary greatly from 5% to 25% running the upfront costs to tens of thousands of dollars. Add to it the costs of an inspection, loan closing costs, and furniture or newer appliances and pretty soon your house rich and cash poor.
There actually are still some 0 down loan programs that Cross and Associates of Keller Williams helps their buyers obtain. Here are few.
1) The Good Neighbor Next Door Program offers HUD-owned single family (one-unit) homes to eligible participants at a 50% discount. Law enforcement officers, teachers, firefighters and other emergency medical technicians who meet all other requirements of the program are all eligible to participate in this program.
2) USDA Rural Development program. This program allows zero down and cheap mortgage insurance for properties in “farm” areas. This covers almost all of Matsu Valley with only minor exceptions.
3) Doctors and Registered Nurse Program: This is made to a new resident, new attending (7-10 years out of residency or less), or dentist only (although some offer loans to veterinarians, optometrists, podiatrists, and even attorneys). Many lenders carry variations of this program which requires 0 down payment.
4) VA Loans: This is the most famous and best of the bunch. Lowest credit score requirements. Highest debt to income tolerances. Assumable to any other qualified VA buyer. Maximum loan value of $625,000 and can be used to purchase more than one property.
The important thing to know is that it is vital that you work with a great local lender and Realtor who are proactively looking to find affordable financing and great deals. If you think these programs might work for you, call Adam Heafner with First Rate Financial at 907-222-5505 or Kevin Cross of Cross and Associates at 907-865-6529.
Don’t get sold. Get informed.
Cross and Associates Real Estate