2 More Mortgage Options that Require Zero to $100 Down

Continuing our discussion of mortgages in Boca Raton which do not require a down payment, here are the rest! There are two more mortgage options that home buyers can apply to that require zero to $100 down payment. Here they are. Please take note that this list will continue from the previous list shown in the blog before this one.

Option #3: Zero-Down VA Home Loan Program

The FHA is not the only government agency offering home buyers low down payments. The U.S. Department of Veteran Affairs has a VA loan for those who are members of the military. This is great!

VA loans are specifically for veterans, both active duty military and the surviving spouses of the military members who passed away as a result of their service to this country. The veteran and their spouses don’t have to pay anything for the down payment. VA loans have lower interest rates than conventional mortgages. They don’t require a good credit score. A credit score as low 530 will be sufficient for a veteran to get a VA loan. Mortgage insurance is not required. But there is a funding fee that all veterans who are not receiving disability income from the VA need to pay. It can be included in the mortgage amount. This funding fee can be anywhere from 2.15 to 2.4 percent of the loan for first-time buyers.

Unfortunately, most real estate agencies don’t fully understand how the program works. So they are hesitant to accept an offer that has the US Department of Veteran Affairs financing it. And VA loans can’t be used to buy an income property.

Option #4: USDA Home Loan

A USDA loan is not as common as all the other three mortgage options spoken about. A USDA loan doesn’t require any money down. The official name for the USDA Home Loan is really the USDA Rural Development Single Family Housing Guaranteed Loan. The closing costs can be financed under this program.

As part of the Community Reinvestment Act, banks and other financial institutions can provide unique financing within certain zip codes. USDA Home Loans are normally in low to moderate income neighborhoods. Some people in these programs allow for 100% financing. It depends on the zip code of where the home is located.

According to Phil Georgiades, chief loan steward of the VA Home Loan Centers, “USDA loans are only for rural use, so the area where the home is located must have a population of 10,000 or less.” This might be a good program for those living in small communities in cities.

Ace Mortgage Loan Corporation is a mortgage company located in Coral Springs, FL. This company can assist you with applying to one of the four mortgage options we covered. We will let you know which one is best for you and then we will help you every step of the way to the point of making a final purchase for a home. Their services are available to those living in Coral Springs, Coconut Creek, Pompano Beach, Plantation, Delray Beach, Boca Raton, Davie, and Plantation. Call the mortgage services experts at Ace Mortgage Loan Corporation today.

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