Zero Down Loans and Loan Programs
Zero down loans and zero down loan programs are still available! That question comes up a lot. A potential home buyer has excellent credit, good income, but they have no money saved for a down payment. There are some options for low or zero down loans. The most flexible zero down loan available is the Zero Down California™ program (for California home buyers). Zero Down California™ has no maximum income restrictions, and no specific occupation requirements. Zero Down California is becoming the most popular 100 percent financing program for obvious reasons.
Most other programs we’re going to identify will require that the homeowner occupy the property. Second, some of the programs require the home buyer to be employed in a specific occupation (teacher, police officer, military, etc,) Lastly, some programs will have income restrictions. So if you fit in one or more of the categories, you may be on your way to purchasing a home.
- 1- No Down Payment VA Loan Veterans Affairs (formerly the Veterans Administration) guarantees no-down purchase mortgages for qualified veterans. Private lenders originate VA loans, and the VA guarantees those loans. Unlike FHA loans, there is no mortgage insurance. The borrower must pay a funding fee, but that fee can be rolled into the loan amount. The VA funding fee varies, depending on whether the veteran served in the regular military or in the Reserves or National Guard, and whether it’s the veteran’s first VA loan or a subsequent one. The funding fee can be as low as 2.15 percent or as high as 3.3 percent.
- 2- USDA Loan Here’s a loan most people with which most people aren’t familiar. In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased or served must be located in an eligible rural area as defined by USDA. This loan is not just for farms! You may look up online to see if your California City is within an eligible area by clicking the link that follows USDA Eligibility areas
- 3- Zero Down Navy Credit Union Loans. 100 percent financing to qualified members of the credit union. Similar program to the VA Loan in that the financing does not require any MI.
- 4- CHDP (California Homebuyer Downpayment Assistance Program) Offers a deferred-payment subordinate loan in the amount of (3%) of the purchase price or appraised value, which ever is less to be used for down payment and/or closing costs. This loan is to be combined with a CalHFA first mortgage
- 5- ECTP (Extra Credit Teacher Home Purchase) Must be a first time home buyer to qualify. Provides a deferred-payment junior loan for eligible teachers, administrators, classified employees and staff members working in county/continuation or high priority schools in California. ECTP junior loans range from $7,500 to $15,000 depending on the area in which the home is being purchased, and can only be combined with an eligible CalHFA first mortgage loan. ECTP subordinate loans can only be used for down payment assistance. This loan is to be combined with a CalHFA first mortgage
Please complete the form on the right for a quick pre-approval for your home purchase loan. A loan counselor will review your information and contact you regarding the programs you appear to qualify. If you have already found a property, please note that in the comments section and your inquiry will be expedited.