We get it! A down payment, especially a full 20% of purchase price, can seem more impossible than improbable! But you don’t have to go that route.
Today, I want to talk to you about your options for buying a house with no-money down- that’s right. A 0% down payment.
There are many options for no-money down loans for first time home buyers and even a few for second-time home buyers.
SO, let’s talk about your options here if you’re considering a no-money down loan.
VA loans, available for veterans, require no money down and have awesome interest rates, but slightly higher closing costs.
The next is Utah Housing, which is a grant program. With this program, you basically get two mortgages. The first is for 100% of the price of your home, while the second is a much smaller loan to cover your closing costs and down payment, which allows you to purchase a home with no money out of pocket.
Thirdly, we have the USDA/Rural Area Housing. Homes in Tooele, Saratoga Springs, Eagle Mountain, Payson, Santaquin, all of Juab counties qualify as ‘rural areas’ and may be approved for this loan type. The homes need to be move-in ready, or close to it. If you’re looking to purchase a condo, they are more difficult to get approval for with this type of loan.
Lastly, let’s talk about Portfolio loans. There are two credit unions who do them-UCCU and Mountain America. The way these loans work is that the credit union finances your loan in-house, allowing more freedom with down payments. You will need an account with the credit union and your interest will be slightly higher. However, it is considered a conventional loan, which means you can buy a home that isn’t move in ready and you’ll still be able to get approval.