Home Loans Arizona - California - Nevada - Utah

How to Purchase a Home with No Money Down

August 9th, 2014 9:46 AM by Nathan Rufty

Weather you are a 1st time home buyer, move up/down buyer or 2nd time home buyer coming off a foreclosure, short sale or bankruptcy, you still can purchase a home with NO money down.

no money home loan programPurchasing a home with no money down at 100% financing is available on 2 programs known as VA and USDA home loan. I have written a lot about these 2 lending programs because at 100% financing to purchase a home, these 2 program are not the dominent lending programs at the moment.

They should be especially with no money down to purchase a home, each program is at 100% financing. That means you are not required to have thousands of dollars to put down, a couple hundred dollars can do. Also, there are advantages with the VA and USDA home loans when it comes to closing cost.

The VA home loan protects the Veteran by restricting the amount of closing cost he or she can pay, there is a double benefit, no money down and limited closing cost that the Veteran is allowed to pay. The VA loan program by far is the best performing home lending program on the market. Has the lowest delinquency rate amongst other programs and no monthly mortgage insurance associated with the program as well as no prepay penalty.

Utilize your VA benefit and purchase a home with no money and the other is that, once you are in the home and looking to refinance your VA home loan into a lower rate or pull cash out to pay off debt or down some home improvement. You are able to refinance into a lower rate without an appraisal know as the IRRRL program

Also, another lending program widely under utilized in California is the USDA home loan program. Program allows a buyer (no need to be a 1st time home buyer to use this program) to purchase a home in a designated area of the particular county that you are looking to purchase in. So no money down to purchase and the other great benefit (this is the only loan program where you can finance your closing cost in the loan) is that you are able to finance your closing cost in the purchase loan as long as the home appraises at a higher amount than what the agreed upon purchase is. 

Wow, so you are saying I can purchase a home for less than $1000 out of pocket? You sure can with the USDA-RD home loan program. The cost of pocket with be for the appraisal of around $475 and if you elect to do so an home inspection (not required but recommend) and that will run around $400. If you are limited on funds, look at this program because of the benefits it has to offer.

I welcome the opportunity to discuss these 2 home loan programs or another program to purchase a home with no money down. Call me direct at 909-503-5600 or email me HERE. I look forward in hearing from you.

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Posted by Nathan Rufty on August 9th, 2014 9:46 AM



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