Here are some highlights of the USDA No Money Down program:
Finance full purchase price plus closing costs up to 103.5% of the appraised value with or without seller concessions
No cap on seller concessions, if seller is not paying closing costs, they can be rolled into the loan amount up to 103.5% of appraised value, not sales price. Great on foreclosures.
One lien, no down payment assistance required
No post-closing reserve requirements
Not limited to first time home buyers
Finance needed property improvements into loan amount up to 103.5% of â€œAfter Repaired Valueâ€ (case by case, contact me for details)
NO MORTGAGE INSURANCE: That means lower payments than FHA
Full doc only, must have stable work history (2+ years)
Self-Employed borrowers okay with 24 month average income
620 minimum credit score
No open collections, charge offs, judgments or tax liens
No pre-pay penalty
30 year fixed rates
Primary residence only
Available for SFRâ€™s, condos & town-homes only, No mobile homes or multi-family properties
To verify if a property is in an eligible area go to the following link:
If you would like more details on how to qualify for this loan please feel free to contact me at your convenience.
Elliott R. Oliva
Envoy Mortgage, LTD.
If interested email me I can give you the loan officer I work with.
You have some excellent answers here. To clarify a few things. FHA MI drops off @78% not 80%. And conventional MI can ben done three different ways. It can be all upfront. It can be monthly or split. Anything upfront is there unless you refinance the loan. The monthly can go away once you hit 20% equity BUT it's not always easy to prove to the lender when you think it has hit 20%equity. Since the loan gets sold so often don't count on it being easy since there is no way to know for sure who will buy the loan. Hope this helps let me know if you need more. Thanls
Yes FHA is a great option, however; there are some new programs out there that you could possibly qualify for. This program is specific to an address and is qualified by your income. Most properties in this area of Greater Piedmont qualify for this program. If you qualify for this loan that you can get a 100% financing loan with NO Mortgage Insurance. I have had many clients us this program and the lender I use is also qualified to offer this program. The funds do go away so when you purchase will also be important. If you have any further question or would like more information, please do not hesitate to call or email me. Our website also has information regarding this program. Good luck!
Donna Osborne, ABR, CDPE
Certified Foreclosure Prevention Specialist
The Power Hosue Group
Glenn Stromberg, 703-987-8053, glenn.stromberg@LNF.com
I think the answers below pretty much cover the viable alternatives for you (VA - 0% down, FHA - 3.5% down, and some lenders will do a conventional loan with a 5% down payment). A key piece for you will be to understand how Mortgage Insurance (MI) works. Here is a key difference. In an FHA loan, you'll pay MI as part of your monthly payment in addition to an upfront component of MI. The monthly component will go away after 10 years, or when you go show the lender that you have 20 or more percent equity in the home. In a conventional loan, the MI is a bit cheaper, but the MI never goes away, unless you refinance.
Knowing that your available cash is low, I can share with you a couple of different tactics I've used to minimize your cash out of pocket, and to potentially lower your interest below market rates.
If you would like to talk further, please feel free to email or call me. No obligations. If I don't hear from you, I wish you the best of luck in your search.
Andy Krumholz, ABR, GRI, CDPE
Keller Williams Realty
703-599-4755 - cell