First time home buyer loan with no down payment
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
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
Click on the question below to reveal the answer
► 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
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.
► 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
► 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
► Do buyers pay Realtor®
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?
► 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.
► What loan is right for me?
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
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
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.
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.
► 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.
► What are closing costs on a home purchase?
Learn about the new good faith estimate.
► What are discount points on a mortgage
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?
► 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.
► 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
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.
► What is an adjustable rate mortgage?
What is a one year, 3/1, 5/1 ARM. What is a hybrid mortgage?
► What are reverse mortgages and how
do they work?
Think of a reverse mortgage as a line of credit without a monthly
► What is home equity?
Home equity the ownership percentage in the home.
► 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
Private mortgage insurance helps to protect the lender against
default on a conventional mortgage. See more