How Do I Buy A Home with Zero Down?

Buying a home is a dream that many people share. However, the down payment required to purchase a home can be a significant obstacle for many people. The need for a large down payment is one of the biggest misconceptions that homebuyers have. Fortunately, there are several options available for homebuyers to purchase a home with zero down payment. In this blog post, we will discuss four loan options that can help you buy a home with zero down payment.

1. VA Financing- VA financing is a loan program that is available to active-duty military personnel, veterans, and their families. The Department of Veterans Affairs (VA) guarantees a portion of the loan, which allows lenders to offer favorable terms and low or no down payments. With VA financing, there is no down payment requirement, and the loan is available with fixed or adjustable rates. To qualify for VA financing, you must meet certain eligibility criteria, including serving for a minimum period of time and obtaining a Certificate of Eligibility (COE). Another huge benefit of a VA loan is that it often carries a lower interest rate than other types of loan programs.

2. USDA Financing- USDA financing is a loan program that is available to homebuyers in rural areas. The United States Department of Agriculture (USDA) guarantees the loan, which allows lenders to offer low or no down payments. To qualify for USDA financing, the home you are purchasing must be located in a designated rural area, and you must meet certain income limits. A rural area is often closer than you think. There are online tools that can show you the map but most areas in East Texas qualify outside the Tyler and Longview city limits. Elidgible areas include Flint, Whitehouse, Bullard, Jacksonville, Gilmer, Chandler and more!

3. Grant Programs- Grant programs are available to assist homebuyers with down payment and closing costs. These programs provide grants that do not have to be repaid, and they can be used to cover a portion or all of the down payment and closing costs. Grant programs are available from state and local governments, non-profit organizations, and private companies. Some grant programs have income limits or other eligibility requirements, so it is important to research the program carefully before applying. One downside of these programs is that often you are required to occupy the property for a certain number of years or you are required to pay the grant back.

4. Professional Loan- Programs Professional loan programs in the past were only available to certain professions, such as doctors, dentists, and lawyers. Now there are professional programs that offer zero down financing for many more professions that have a license including teachers, realtors, plumbers, CPAs and more. These loan programs offer favorable terms and low or no down payments to help these professionals purchase a home. Professional loan programs are available with fixed or adjustable rates, and they may also offer other benefits, such as flexible underwriting guidelines and higher loan limits.

In conclusion, there are several options available to help homebuyers purchase a home with zero down payment. VA financing, USDA financing, grant programs, and professional loan programs are just a few of the options available. It is important to research each option carefully and work with a knowledgeable lender to determine which option is best for your unique situation. By taking advantage of these loan programs, you can make your dream of homeownership a reality. The Burks Team has been helping home buyers evaluate their options in the Tyler and Longview areas for over 25 years. We are here to help!