No Money Down Mortgage
First of all, no money down mortgage options do exist. You may be surprised to learn that you may qualify to purchase a new home with little or no money down. At North East Financial, there are many different options available for 100 % financing or little money down.
100% Financing Options:
VA Loan: If you are a veteran or active duty, you may qualify for a loan from the U.S. Department of Veterans Affairs. A VA loan is a great program because there’s no money down, no mortgage insurance, and it is guaranteed by the government. In order to qualify, you’ll need a Certificate of Eligibility, good credit, and enough income.
USDA Loan: The United States Department of Agriculture (USDA) offers loans with 100 % financing. A USDA loan is not just for farms and rural areas- many suburban areas in Connecticut actually qualify for the USDA program. A USDA loan requires no money down and are insured by the government. You even can include eligible home repairs and improvements in your loan size. However, this loan type has income limits- the most a couple is allowed to earn jointly is $99,200. USDA mortgage rates are often lower than rates for comparable, low- or no-down payment loans.
CHFA Loan: Connecticut Housing Finance Authority (CHFA) offers loan programs specifically for first time home buyers in the state. Qualified individuals must not have owned a home in the last 3 years. CHFA loans are broken up in a first mortgage and a second down payment assistance loan. Like USDA, there are income limits. CHFA interest rates and typically offered below market interest rates. CHFA also offers incentives to police officers, teachers, those not in the military, as well as individuals with certain disabilities.
Below are a few loan programs that require a low down payment:
FHA Loan: The FHA allows a down payment of just 3.5 percent of the loan amount. A great thing about FHA loans is that the down payment can be entirely from gift funds. A minimum credit score of 500 is required. There is an up-front mortgage insurance premium due at closing as well as a premium for the life of the loan. There’s also a program offered by the FHA that supports homeowners who have experienced short sales, foreclosures or bankruptcies.
Conventional 97 Loan: A new option available from Fannie Mae and Freddie Mac is the Conventional 97 program. This program allows for just a 3 percent down payment, which can be entirely gifted. The home must be a single-unit and the loan size must not exceed $417,000. The loan must be a fixed rate mortgage.
I would love to help you with your upcoming home purchase. Feel free to call me at 860-788-7237 to discuss what will work best for you.
President of Northeast Financial
210 S. Main ST. Middletown, CT
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