Buying A Home With a 0 Down Mortgage
Many would-be home owners have trouble coming up with the money for a down payment on a home. Would you love to buy a home but you don’t have 20 percent or more to put down, and don’t want to wait to save that much? This is common among first-time home buyers, as well as repeat buyers whose homes may not have appreciated significantly in recent years. At eLEND, we have several home loan programs available tailored specifically to this scenario. Even if you may not qualify for a 100% financing solution, you may be eligible for a low-money-down loan, reducing out of pocket expenses.
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As a mortgage lender, eLEND provides dedicated and knowledgeable Mortgage Loan Originators who can help you find affordable home financing options that are right for you. Using educational resources and the latest technology, we help simplify the mortgage process for our customers while providing consistent and dedicated service with a personal touch.
When you consult with our mortgage specialists, we’ll walk you through all the possibilities for a low down payment mortgage. These include:
- VA Loans – To be eligible for a zero down VA loan you must be a qualifying active duty or veteran member, or surviving spouse of US military. These loans are backed by the Department of Veterans Affairs.
- USDA Mortgages – Backed by the US Department of Agriculture, USDA rural housing loans provide zero down financing to borrowers with lower income in rural parts of the country.
- FHA Loans – Not a zero down loan, but rather a low money down program, FHA loans are more widely available. Put down as little as 3.5 percent on a new home purchase.
Each of these programs is backed by an agency of the US government, meaning they insure the lender against losses should the home go into default or foreclosure. This allows lenders to offer more favorable terms to borrowers, and creates many homeownership opportunities.
0 down loans aren’t just for new home purchases. With a VA or USDA mortgage you may be able to refinance as much as 100 percent of the value of your property. Keep in mind that these ratios are for rate and term refinances, where you take out a new loan for the exact amount of your existing mortgage. If you’d like to take additional cash out you may be limited to a lower percentage of the property value.
Refinance Your Home
If you qualify for a USDA or VA mortgage, you may be eligible to refinance as much as 100% of the value of your home; and FHA loans offer up to 97.75% loan to value. These percentages are for a refinance loan where you take a new loan for the exact amount of your existing mortgage. Refinancing to take out additional cash based on your home equity may be limited to a lower percentage of the property value.