Can You Get A Home With No Down Payment?

Let’s set the record straight. No down payment is a thing. But, no money down, that is not a thing. There are costs, outside of the down payment, when financing your home purchase. These costs are made up of fees that lenders charge to cover their costs and other fees that get paid to third parties, like an appraisal fee or private mortgage insurance. So while purchasing a home without a down payment is a possibility, you will still need to put money down. When it comes to the mortgage options that do not require a down payment, as with all other loans, they carry their specific requirements.

Note: we are not charging any of our lender closing costs* for the remainder of 2020 on purchases if all the requirements are met.  Learn more about the program and requirements here.

Let’s take a look at mortgages with no and low down payment options.

Mortgages without a Down Payment Requirement

Stockton Mortgage offers a couple different loans that allow for 100% financing, or that have no down payment requirement.

The first is the VA loan. This is offered through the US Department of Veteran Affairs and is available to all honorably discharged veteran, those currently serving on active duty or who have completed a total of six years of service in the National Guard or selected reserves. Certain surviving spouses of veterans may also be eligible.

The second is the RHS/USDA loan. This loan is offered through the US Department of Agriculture / Rural Housing Services. It is available to borrowers purchasing a home in one of the designated rural areas who meet their income restrictions.

Learn more about these loan products.

Mortgages with a Low Down Payment Requirement

You may be surprised by how many mortgage options offer a low down payment requirement of 3-5%. Both the conventional and FHA loans allow for a lower down payment. These lower percentages can ease the pain of coming up with a down payment on a home. But did you know that many states have programs available to encourage their residents to move into home ownership by offering down payment assistance programs (DAP)? These programs range from educational courses for first time home buyers to grant money dedicated to assisting those who qualify. Some states even offer grant money from time to time that their residents can use toward their down payment and closing costs.

You can find more information about these state sponsored programs by clicking here.

We strive to lessen your concerns about homebuying by guiding you through the home buying process. We know what a big step this is for you, your family, and your future; that’s why we say, “find your home, and we’ll take care of the rest!”

If you have some questions before you get started, drop us a note in the chat box below. However, if you are ready to get started, click here to get a quick quote.

*This offer is available on new purchase applications only and the applicant cannot have previously applied within 90 days of a new application. The minimum credit score requirement is 740. The waived lender closing costs include application, underwriting, and other origination charges; other closing costs will still apply, including third-party fees such as appraisal, title, escrow fees, title fees, etc. Offer is not available for refinances. This promotion cannot be combined with any other offers. Stockton Mortgage reserves the right to modify these terms and conditions or terminate the Offer at any time. Other terms and conditions, restrictions, or eligibility criteria may apply.

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