Can I Get a Home Loan With No Money Down?

The question many people have is “Can I get a home loan with no money down?”  The answer is yes but there are some conditions and certain loan types that allow for no money down.  The first loan is a USDA Loan.  We provide mortgages in Columbia, Lexington, Blythewood, Sumter and Chapin, as well as all of South Carolina.

USDA Loans

USDA Loans allow people looking to purchase a home with no money down if certain conditions are met.  The first condition is the desired home has to be in what is considered a rural area by the USDA.  This information can be determined by entering the address on this website or contacting me, C. David Cain, at 803 261 9267.  If the property is located in an allowable area, the other conditions are debt to income ratios below 45% (at the highest allowable limit) and credit scores of 640 and above.  There are some possibilities for approval below that score but the total credit profile is a large factor in determining this possibility.

VA Loans

VA Loans allow Veterans and active duty Military to purchase a home with no money down.  A VA Loan is the best option for those who qualify since it doesn’t require Private Mortgage Insurance and typically has the best interest rates.  If you are a Veteran or active duty Military and qualify for a VA Loan, we charge NO LENDER FEES on all VA Loans!  This is a savings of $995!  However, the VA charges a funding fee based on the number of times your Certificate of Eligibility has been used. But, if you are a Veteran and have 10% or more in military related disability, the funding fee is waived.

State Housing Loans

State Housing Loans offer qualified buyers to get a loan with no money down.  This loan also has requirements for credit score, debt to income ratios and income limits.  With this program, qualified buyers can get down payment assistance and grants of $6000 and as much as $15,000.  The grant can be used for down payment and closing costs.  However, State Housing Loans typically have higher fees so it is vital to talk with your Loan Officer to get an estimate and communicate that to your Realtor.  The closing costs can be a part of the Contract negotiation and the costs can be paid by the seller.

No Money Down Home Loans

If none of these loans are options, there are other loan options with as little as 3% down with a Conventional loan and 3.5% with a FHA insured loan.  With both of these loans, a Gift from an acceptable source is allowed for the down payment which would allow the buyer to get a loan with no money down.  So, the misconception that 20% down is needed to buy a new home is clearly not accurate and there are many options for people who would like to get a loan with no money down.  We provide Mortgages in Columbia, Lexington, Blythewood, Sumter and all of South Carolina.  Contact us at 803 261 9267 if you would like to find the best option for you to get a loan with little to no money down!

 

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