There is a common misconception that you need a down payment of 10%, 15%, or 20% in order to purchase a home. However, there are actually a few options out there that allow buyers to put zero down on their home purchase.
The first option pertains specifically to people who are serving, or have previously served, in the military. As a way to thank our veterans and active duty military members for their service, the VA loan allows them to purchase a home for no money down and with a very low interest rate.
For those who aren’t in the military, there are still options.
The USDA loan, for example, is a great route for anyone considering living in a rural area. There are a few different applicable areas around the outskirts of Charlottesville, Belmont, Mount Holly, Troutman, and certain other places all qualify.
This loan is a great option, since it has low interest rates, no down payment, and requires no PMI—which is mortgage insurance.
If neither of these programs is applicable to you, there are still options.
Certain programs exist that allow you to pay as low as 1% down. A couple of our in-house lenders actually allow buyers to qualify for a conventional loan with just a 1% down payment. To qualify for this, you do need a credit score above 640 to 660 depending on your job and assets.
Finally, grant programs through the state can also provide down payment assistance. The North Carolina Grant Program is still offering $15,000 for first-time homebuyers. This is a great program. If you are a new buyer or haven’t bought a home in a few years, we’d love to help you look into this product.
These days, making sure that you have the best financing options is incredibly important and could save you hundreds on a monthly basis. When you work with us, we do our best to make sure you get the best rates, terms, and conditions.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.