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Zero Downpayment Loan Programs For Real? What To Know and Where to Find Them

Joel Weiser / Jul 28, 2022 / Expert Articles

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Hi, my name is Joe Weiser and I'm a loan officer here in New York, and today I want to talk to you all about down payments. There are 0% down, which is the bank is going to lend you a hundred percent of the financing of the house, but there are limits to that. First of all, there's a VA loan. And these are limited to veterans.

The other one is also a government program, and this is a USDA loan. These loans are limited to properties. There's a database and you can check on each property if it's USDA approved or not. If it is, you can go for the USDA loan and put nothing down.

The third one is for professionals, it's for doctors. So they're medical professionals, attorneys, and CPAs. There are certain programs. It's not a government program and it's not a conventional program. There are certain banks who have loans more than just for these professionals without putting anything out of pocket, just closing costs.

Let me take it to programs that are available to everybody, Fannie Mae or Fannie Mac. This is a conventional program that's available to everybody. So you can put down just 3%, not 20%, and it's not an FHA loan. It's a conventional loan. You just need to be a first time home buyer to qualify. But if you're a first time home buyer, you're buying the family property, then you should be able to put just 3%.

So there are programs that are not for first time home buyers from Fannie Mae or Freddie Mac. However, they are limited with income. So they have a cap how much income you can make. The Fannie Mae's program is called the home ready program. Freddie Mac's program is called a home possible program. If you are looking for a house, you can search, you can Google let's say home ready income limits, or home possible income limit.

You will be able to put in an address, and you'll see how much the income can be in that specific area. And then there is the FHA program, which is three and a half percent down. And this is also for two to four units, so it's not limited to a single family. One more thing in case you don't know: usually if you put down less than 20%, there's something that's called mortgage insurance.

That's a monthly fee that's going to come with the payment, which you'll pay usually till you pay down the loan to 80% of the property value. If you have any more questions about down payment or anything that was related, we're here at find my way home. Reach out to me, reach out to us and we'll answer.

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Joel Weiser

Hi, I'm a mortgage expert living in New York. I am also licensed to help with your home loan in several other States across the Country. Do you have mortgage questions? How can I help? View Profile

Joel Weiser NMLS # 1509389 Loan Officer 7016 Fort Hamilton Pkwy Brooklyn, NY 11228 (917) 539-7704 joel.weiser@findmywayhome.com

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About Joel Weiser

Hi, I'm a mortgage expert living in New York. I am also licensed to help with your home loan in several other States across the Country. Do you have mortgage questions? How can I help?