First time home buyer loan with no down payment


Young woman searching for a no down payment loanMany first time home buyers want a mortgage without down payment. Is there a no down payment loan? Yes, if you’re a veteran, you may be eligible for a no down payment VA home loan. The USDA home loan program does not require a down payment. The FHA loan requires a small down payment; however, the down payment can be “gifted” by an eligible donor.

If you're a home buyer, you have questions about which loan program is right for you.

Or you may be wondering what closing costs are; and how much of a down payment you will need to buy a home. And if you've purchased a home previously, you should know that a lot has changed over the last few years. So here's a collection of articles to make you a more informed home buyer.

► Can a mortgage down payment be borrowed?

No. The down payment cannot be borrowed. Don't do it. All loan programs allow for "gift" money from relatives and permit seller pay some or all closing costs. Speak to a loan officer for advice.

► Can I get a mortgage loan with a 600 credit score?

The FHA loan program permits a 580 credit score, the USDA programs does not have a minimum credit score and some lenders are accepting a 600 credit score for conventional mortgages.

► Can the seller pay my closing costs? How much can the seller pay?

All popular loan programs, including the FHA, VA, USDA and conventional mortgage loans allow the home seller to pay a percentage of the buyer's settlement costs. The total amount of seller paid assistance varies between loan programs. See more

► Do you have to have house insurance to get a mortgage?

Yes. Regardless of the type of mortgage, you are required to purchase homeowner's insurance, also called hazard insurance, because the lender has the most to lose if the house burns in a fire.

► Do you have to have life insurance to get a mortgage?

No. The lender will not require life insurance as a condition for approval. Private mortgage insurance is often confused with life insurance. Life insurance and private mortgage insurance are completely different. See more about PMI

► Do buyers pay Realtor® fees?

The sales or listing agreement will state that the seller is paying the commission, but the seller will account for the cost when the buyer makes an offer. So in theory, the seller is paying the commission, but the fees are paid for by the buyer from the proceeds of the sale.

► Frequently asked questions

If you're like most home buyers, you have questions about mortgage financing. How do you get a free credit report? How to get pre-approved & pre-qualified? See more

► Home buying tips

If you have previously purchased a house, you know what lies ahead, however, if you're a first time home buyer . . . you have questions. You probably have friends or relatives who anguished over the mortgage process. The reason is probably due to inadequate preparation on their part or the failure of the mortgage loan officer to properly prepare them. So here's some tips to make the mortgage application and your home buying uneventful. See more

► How to calculate per diem interest on a loan

The bank or mortgage company will charge you interest on the loan from the day of closing until the end of the month. See more

► What loan is right for me?

FHA
The FHA home loan is a very popular mortgage because of the low down payment, low credit score requirement and flexible underwriting requirements. See more

Veteran Loan
100% financing. That's right, no down payment is required with the VA mortgage, and the home seller is allowed to pay all closing costs. See more

USDA
The United Sates Department of Agriculture offers a home loan to eligible home buyers and homes located in designated rural areas. No down payment is required with USDA loans. See more

Conventional Mortgage
The conventional loan is a good choice for home buyers with a down payment of at least 10% or when the government backed loans are not possible. See more

► What is a debt to income ratio?

Mortgage lenders use a simple formula to determine the maximum mortgage payment for FHA, VA, USDA and conventional loans. See more

► What are closing costs on a home purchase?

Learn about the new good faith estimate. See more

► What are discount points on a mortgage loan?

Are discount points a devious way to extract money out of your pocket or can you actually save more by "buying" discount points? See more

► What is a home appraisal?

Do home appraisers inspect the home? Who hires the appraiser? See more

► What does my credit score mean?

A credit score is a number that summarizes your credit risk. Mortgage companies use it to make credit decisions, such as the mortgage rate you get when you apply for a loan. See more

► What is annual percentage rate (APR)?

The annual percentage rate is NOT the interest rate that you will pay on your mortgage loan. The Truth In Lending Disclosure is required under the Truth in Lending Act enacted June 29, 1968. This legislation was designed to help the consumer compare mortgage offers. See more

► What is title insurance & how much is it?

Lenders have the most to lose if there is problem with the sale. For example, how do you know that the nice couple selling you the home are "really" the owners and not imposters? Crazy things happen when people purchase homes, so lenders require insurance to protect their interest in the sale. See more

► What is an adjustable rate mortgage?

What is a one year, 3/1, 5/1 ARM. What is a hybrid mortgage? See more

► What are reverse mortgages and how do they work?

Think of a reverse mortgage as a line of credit without a monthly loan payment.
See more

► What is home equity?

Home equity the ownership percentage in the home. Read more

► What is a HUD home?

A HUD home is a one to four unit home (or condo) that was financed with an FHA insured mortgage. When an owner fails to make the monthly mortgage payments, the mortgage company forecloses on the homeowner. See more

► What is private mortgage insurance used for?

Private mortgage insurance helps to protect the lender against default on a conventional mortgage. See more