Home Loans California & Arizona

How to buy a house with no money down in Surprise AZ

July 3rd, 2019 2:41 PM by Nathan Rufty

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.

100% financing in surprise az infographic

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. 

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