100% Financing in Surprise Arizona

Home Buyers in Surprise Arizona love seeing and hearing those words - Buy A House with 0 Down Payment. And why wouldn't they? First-time buyers make up 40% of the home buying market. This is nearly half of all homes sold in the United States.

The mortgage market in Surprise AZ and nationwide flourished over the last few years in large part to 100% financing for first-time homebuyers. Now, buying a home is possible for nearly everyone. More first-time buyers have been able to enter the marketplace than ever before. Banks have become more liberal and lending standards have loosened. There are many, many ways to get 100% financing.

There are many programs that offer 100% financing in Surprise AZ, making it possible for first-time home buyer to qualified with zero down payment. Some national loan programs also have features that can benefit first-time home buyers. Browse the options below to find the right mortgage for your needs.

USDA Home Loans: 100% Financing, Zero Money Down

The USDA’s Rural Development mortgage guarantee program is very popular and sometimes runs out of money before the fiscal year ends.

Many borrowers are surprised to learn that Rural Development loans aren’t limited to farmland in Surprise Arizona. The U.S. Department of Agriculture has maps on its website that highlight eligible areas.

Besides geographical limits, the USDA program has restrictions on household income, and it is intended for first-time buyers, although there are exceptions.

The USDA mortgage comes from a bank, and there is no mortgage insurance. Instead, the USDA levies a 1% upfront guarantee fee, which can be rolled into the loan amount, and an annual guarantee fee of 0.35% of the loan balance.

VA Home Loans: 100% Financing, Zero Money Down

The VA guarantees purchase mortgages with no down payment required for qualified Surprise Arizona veterans, active-duty service members and certain members of the National Guard and Reserves.

Private lenders originate VA loans, which the VA guarantees. There is no mortgage insurance. The borrower pays a funding fee, which can be rolled into the loan amount.

For purchase and construction loans, the VA funding fee varies, depending on the size of the down payment, whether the borrower served or serves in the regular military, Reserves or National Guard, and whether it’s the veteran’s first VA loan or a subsequent loan. The funding fee can be as low as 1.25% or as high as 3.3%.

For first-time buyers making no down payment, the funding fee is 2.15% for members or veterans of the regular military, and 2.4% for those who qualify through their service in the Reserves or National Guard.

No money down: Navy Federal Credit Union

Navy Federal, the nation’s largest credit union in assets and membership, offers 100% financing to qualified members who buy primary homes. Navy Federal eligibility is restricted to members of the military, some civilian employees of the military and U.S. Department of Defense, and family members.

The credit union’s zero-down program is similar to the VA’s, though Navy Federal’s funding fee is 1.75%.

FHA Home Loans: Low Down Payment, 3.5% Down

Federal Housing Administration, or FHA, loans require 3.5% down, which can still be quite a lot of money — for a $300,000 home, that’s $10,500. But, there’s an FHA rule that allows you to get around the down payment requirement in a way. According to FHA guidelines, you can receive a gift for the entire down payment. The gift can be from a family member, non-profit organization, fiancee, or other eligible down payment source.

FHA also offers a niche offering called the Good Neighbor Next Door loan. Teachers, police officers, firefighters, and some other public employees, if eligible, can purchase a home with just $100 down. That’s not quite 100% financing, but very close to be one.

Low down payment: The HomeReady™ Mortgage (3% down)

The HomeReady™ mortgage is special among today’s low- and no-downpayment mortgages.

Backed by Fannie Mae and available from nearly every U.S. lender, the HomeReady™ mortgage offers below market mortgage rates, reduced mortgage insurance costs, and the most innovative underwriting idea on more than a decade.

Via HomeReady™, the income of everybody living in the home can be used to get mortgage-qualified and approved.

For example, if you are a homeowner living with your parents, and your parents earn an income, you can use their income to help you qualify.

Low down payment: Conventional loan 97 (3% down)

The Conventional 97 program was originally discontinued in December 2013. It was later reinstated by the Federal Home Finance Agency in late-2014. This section has been updated to reflect the new product’s guidelines.

The Conventional 97 program is available from Fannie Mae and Freddie Mac. It’s a 3% downpayment program and, for many home buyers, it’s a less-expensive option as compared to an FHA loan.


Most home buyers may need to put down at least 3% to 5% or more of the cost of the home to get a mortgage. But no matter what kind of loan you get — with a down payment or without — make sure you can truly afford the mortgage payments and the other costs of homeownership (insurance, repairs, etc.) every month. 

Not sure where to start? Call Nathan Rufty Today at (623) 850-1210 to see which one of these no money down programs that are available in Surprise AZ can be beneficial for you. 

USDA Loans California

California USDA Loans are becoming one of the most popular loan types in today's mortgage market because of the favorable terms that they offer to home buyers in California. USDA stands for United States Department of Agriculture but USDA loans are used for much more than just farm loans. A USDA mortgage loan in California might be right for you if you want to buy a home with no down payment or mortgage insurance. If you're unsure about your credit rating, or have concerns about a down payment, USDA mortgage loans can accommodate your circumstances with super low closing costs and no MI.

There are two types of USDA home loans that are commonly available for home purchases today. The first and most common type of loan is the USDA Guaranteed Rural Housing Program. USDA Guaranteed Loans allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area and all USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

Financing a home is an ever-changing scenario. If you are in the market to purchase a new home, it is important to be aware of all of your options in financing. Many people are unaware of USDA home loans. USDA loans have helped many families and individuals purchase the home of their dreams, where they otherwise would not have had the opportunity to do so.

What is a USDA home loan in California? 

Contrary to what many Californians are led to believe, USDA loans for home purchases can be utilized to buy exurban and suburban homes all over California, and are not just for purchasing farms. They are also known as Rural Housing Loans, or Section 502 Loans. In order to qualify for this type of a loan, the home must be located in certain areas of the nation and the buyers must meet income eligibility requirements. This type of money loaning program is meant to increase the development of rural areas of the country.

The USDA home loan program is one of the best-kept secrets in the home buying market today. This zero-down, 100% financing home loan is sponsored by the United States Department of Agriculture to promote homeownership in less-dense communities across the U.S. For this reason, it’s often known as the USDA Rural Development Loan (RD Loan) or Rural Housing Loan. The program is part of the larger Rural Housing Service under USDA’s umbrella of programs. But don’t let the name fool you. It’s not just for properties that are far-removed from civilization. In fact, a full 97% of U.S. land mass is eligible for USDA financing, representing 109 million people — about one-third of the U.S. population. It’s very likely that a property near you qualifies.

Benefits of a USDA Loan in California

California USDA loans are very beneficial with their low interest rates and no down payment programs. They are one of the only current programs that offer 100% financing on loans for home buyers. Some home repairs and improvements may also be eligible to be added to the total loan, making this an even more attractive financing option for many home buyers. Other advantages include much cheaper mortgage insurance fees at just 0.04 percent, which does not change based on the size of the down payment. There is also no specific limitation as to the amount that can be loaned, so potentially many home buyers can have more purchasing power with a USDA loan over a conventional private home loan.

Eligibility 

In order to qualify for this type of a home loan you must first be purchasing a home in a USDA-eligible area. Surprisingly, there are many areas of the country that qualify, such as areas in California, the Midwest and even in New Jersey. Second, the household income cannot be over 115 percent of that area's median income.

Am I eligible for a USDA home loan?
There are two main factors for USDA home loan eligibility: the property and the home buyer. USDA property eligibility & USDA buyer eligibility. The home must be located within a USDA-eligible area. The USDA website contains interactive maps with which you can pinpoint an address or take a wider view of a region. The lender will verify USDA rural development loan eligibility in the same way as for any other home loan program. Your credit, income, and bank account information will be compared to current guidelines for USDA loans.

Other Details about the USDA Loan

Loan Terms:  Available in 30-year and 15-year fixed rate mortgage options. Fixed rates are the most time-tested and safe for home buyers, therefore adjustable-rate loans are not available.

USDA guarantee: The name — USDA guarantee loan — does not mean mortgage approval for all applicants is certain. It means that the United States Department of Agriculture backs the lender for properties in designated rural areas. If the borrower can’t pay for some reason, USDA will reimburse the lender monies lost. This insurance helps lenders approve loans with zero down at very low mortgage rates: the guarantee removes much of the risk.

Affordability: One of the most affordable mortgage products available today. The combination of low rates, low mortgage insurance fees, and zero down makes it the most widely-available ultra-affordable loan.

USDA refinance: You can use USDA to refinance if you have a USDA mortgage currently. In fact, you might not even need to provide current income documentation or an appraisal. Read more about USDA refinancing here.

For more information about USDA loans in California please contact Nathan Rufty at: (909) 503-5600

Purchase a Home in Rancho Cucamonga California with No Money Down on the VA Home Loan.

VA assist Service members, Veterans, and eligible surviving spouses become homeowners in Rancho Cucamonga as well as through out Southern California. As a part of our mission is to serve you, we provide a home loan and other housing-related programs to help you buy and repair a home for your own and retain as your personal residency.

A VA Home Loan are provided by private lenders, such as banks and direct mortgage lender. VA guarantees a portion of the loan, enabling the lender to provide you with favorable terms.

The VA home loan program is available to current and active military personal as long as he or she is in good standing with the VA and can obtain a Certificate of Eligibility.

The benefits of a VA Home Loan program are:

• 100% Financing up to the county loan limit (each county has a limit on loan amount)
• No money down required (can bring in funds if chose to) as long as the sells price does not exceed the appraised value of the home
• No monthly mortgage insurance
• Competitive interest rates, lower then conventional rates with 20% down
• VA loans require a funding fee unless exempted by way of being 20% or more disabled by the Veteran’s Affairs
• Loan can be assumable as long as the person assuming the loan qualifies
• Has a sub-program to improve the energy efficient of the home, such as windows, heating and a/c unit
• VA rules limit the amount you can be charged for closing costs.
• Closing costs may be paid by the seller or lender
• No penalty fee if you pay the loan off early
• VA may be able to provide you some assistance if you run into difficulty making payments
• You do not have to be a first-time homebuyer
• You can reuse the benefit over and over as long as you are in good standing with the VA

You can see why the VA Home Loan program is a benefit to our active and retired service members when purchasing a home.

Service members and Veterans:

To obtain a COE, you must have been discharged under conditions other than dishonorable and meet the service requirements below:

Status	Qualifying Wartime & Peacetime Periods	Qualifying Active Duty Dates	Minimum Active Duty Service Requirement
Veteran	WWII	9/16/1940 – 7/25/1947	90 total days
	Post-WWII	7/26/1947 – 6/26/1950	181 continuous days
	Korean War	6/27/1950 – 1/31/1955	90 total days
	Post-Korean War	2/1/1955 – 8/4/1964	181 continuous days
	Vietnam War	8/5/1964 – 5/7/1975 *For Veterans who served in the Republic of Vietnam, the beginning date is 2/28/1961	90 total days
	Post-Vietnam War	5/8/1975 – 9/7/1980 *The ending date for officers is 10/16/1981	181 continuous days
	24-month rule	9/8/1980 – 8/1/1990 *The beginning date for officers is 10/17/1981	24 continuous months, OR The full period (at least 181 days) for which you were called or ordered to active duty
	Gulf War	8/2/1990 – Present	24 continuous months, OR The full period (at least 90 days) for which you were called or ordered to active duty
Currently On Active Duty	Any	Any	90 continuous days
National Guard & Reserve Member	Gulf War	8/2/1990 – Present	90 days of active service
	Six years of service in the Selected Reserve or National Guard, AND Were discharged honorably, OR Were placed on the retired list, OR Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable, OR Continue to serve in the Selected Reserve

*If you do not meet the minimum service requirements, you may still be eligible if you were discharged due to (1) hardship, (2) the convenience of the government, (3) reduction-in-force, (4) certain medical conditions, or (5) a service-connected disability.

Working with a lender that knows the VA home loan process is key in California, I had the privilege in working with many veterans in securing a 100% no money down VA home loan program over my 25 years of lending. I welcome the opportunity to discuss the requirements of this great loan program and how we can start the path towards homeownership.

by Nathan Rufty