No Money Down Home Loan Programs

100% Mortgage Financing Options

First, no money down home loan options do exist in Connecticut.  At North East Financial, there are many different options available for 100% mortgage financing or little money down.  All of these programs have different requirements and not everyone will qualify.

No Money Down Home Loan Programs:

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 to be employed.

USDA LoanThe United States Department of Agriculture (USDA) offers loans with 100% mortgage financing.  A USDA loan is not just for farms and rural areas- many suburban areas in Connecticut qualify for the USDA program.  You even can include eligible home repairs and improvements in your loan size.  However, this loan type has income limits.  USDA mortgage rates are also very competitive.

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.

Low Down Payment Options:

FHA Loan:  The FHA allows a down payment for as little as 3.5 percent of the loan amount.  A great thing about FHA loans is that the down payment can be entirely from gift funds.  Furthermore, this program allows for less than perfect credit.  There’s also a program offered by the FHA that supports homeowners who have experienced short sales, foreclosures or bankruptcies.

Conventional 97 LoanA 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.  Finally, the home must be a single-unit and the loan size must not exceed state requirements.

Please contact me today for a free consultation on no money down home loan options.  The pre-approval process is easy, and we will work with you every step of the way. 

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Elizabeth Welch NMLS 1618684
Company NMLS 117273
210 South Main Street
Middletown CT 06457
[email protected]
860-575-5448