July 19th, 2010 by Michael Oliver

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Zero Down Mortgages While Not Plentiful Are Still Available If You Know What Programs To Look Into

Are you a first time home buyer looking to buy a home of your own but have little to no down payment money available? While buying a home is a big step there are still really good loan programs (mortgages) available that offer no money down financing. If you have an average credit score, and a two year job history more then likely you can qualify for a zero down home mortgage to buy your first house. What kind of loan(s) are available for this?

USDA 100% Financing Mortgage (NO Money Down Home Loan)

The most popular zero down home mortgage/ loan available in today’s market is what’s called a USDA 100% home mortgage.  With a USDA mortgage you can borrow up to 103% (in some cases not all) to even have your closing costs (costs to provide/ process the loan to you) rolled into your mortgage. Now in most cases when I represent first time buyers I can get the seller to pay for your closing costs through negotiations however it is a nice option to have if we have a seller who is holding form on a great home at a great price. With No-Money Down the USDA loan is a very popular mortgage with first (1st) time home buyers; interest rates are very low, they are also somewhat easy to qualify for with in general only average credit needed and a stable 2 year job history, as well as the fact homes are so low in price right now with final mortgage payments for first time buyers being in the low $800’s/mo to just under $1,000/mo for amazing properties.

*USDA mortgage money is not always available so it is important that as a program you work with a Realtor and loan officer who understands this loan well as otherwise you maybe ready and “approved” for a USDA home loan with no money available to be lent…

Other Zero Down Home Loans Available in Tucson?

VA Mortgages- Mortgages backed by the Veterans Administration is another options for those home buyers who have served or are currently actively serving in the military. VA Mortgages offer Zero (0) Money down loans, great rates, and easy access to money available.

HUD Home $100 Down Mortgage- This mortgage program while not a true “zero” down is a mortgage program where a home can be purchased with only a mere $100 down. This loan program is only available for HUD Homes that the Federal Government owns and designates as available for the $100 down program. They do this as an incentive to move their harder to sell HUD homes.

If you would like additional information about no money down loan programs available in Tucson call or email and I will be happy to discuss your options with you.

First Time Buyers