There are a few zero down programs available. Most folks are familiar with VA and USDA options (seen below). There are a couple other programs out there that don’t require you to be a veteran (THANK YOU for your service!) or force you into rural USDA areas. They are the Chenoa Fund (see below) and the Oregon Bond Loan Program (more details here).
Through the Chenoa Fund, borrowers that meet certain credit score and DTI (debt to income) requirements can receive a first mortgage and a second mortgage or grant to cover their 3.5% minimum investment requirement. Your only expected out of pocket expenses are:
- Earnest Money (This could be $100-$1000 and is determined by you. This may be refunded at closing)
- Home Inspections (Most buyers opt for a home, sewer line, and radon inspection. The total of these range from $300-$750 depending on the home and which inspectors you hire)
- Home Appraisal (Some lenders may cover this cost but typically it’s out of pocket. These range from $400-$800)
- 620 or higher FICO score
- Income under $85,000 a year
- You must occupy the home your purchase (not meant for investors)
- Home must be eligible for FHA financing (no major fixers or condos that are not FHA approved)
VA LOANS
*Source: Primary Residential Mortgage, www.ShelbySpencer.net
As of today, the VA Loan program has helped over 20 million families across the country. These loans are designed for military personnel, veterans, and military families. It’s your turn to take advantage of the benefits you deserve.
We provide access to government-backed VA Loans because you and your family deserve a helping hand. You don’t have to worry about a down payment or mortgage insurance. This mortgage keeps more money in your pocket every month.
- Key Features
- Requirements
Key Features of VA Loans
- Choose from various term options and fixed or adjustable rates
- Enjoy lower monthly payments because you won’t need to pay mortgage insurance
- Get 100% financing with no down payment requirements
Requirements
| Down Payment | None |
| Terms | 15, 20, 25, 30 years, fixed and ARMs |
| Credit Score | 600 minimum |
| Mortgage Insurance | No |
| Maximum Loan Limit | Yes, varies by county |
Here are some other reasons a VA Loan might be an ideal option for you:
– Lower interest rates than those of conventional loans
– Lower minimum credit score required
– Strict limits on closing costs
– Simplified approval process, designed to cushion common financial challenges affecting veterans and military families
With these benefits, it’s no surprise that the VA loan program has guaranteed over 20 million loans across the US.
If you meet the qualifications, you can enjoy lower closing costs, lower mortgage payments, and the possibility of no down payment.
Primary Residential Mortgage has years of experience providing eligible borrowers with access to VA loans. We have intimate knowledge of the local market as well as the national presence to offer better terms and rates.
USDA LOANS
The USDA determines what “rural” means, and that varies widely by state. But if you’re eligible, you can qualify for lower monthly payments and you don’t need money for a down payment. You’ll also spend less time in traffic driving to the closing.
- Key Features
- Requirements
Key Features of Rural Housing (USDA) Loans
- Available as a 30-year option with a fixed rate
- Finance 100% of your home with no down payment requirement
- No mortgage insurance means you have lower monthly payments
- The loan’s income eligibility cap varies by community
Requirements
| Down Payment | None |
| Terms | 30 years, fixed rate |
| Credit Score | 640 minimum |
| Mortgage Insurance | No* |
| Maximum Loan Limit | Yes, varies by county |
| *Up-Front Guarantee Fee financed into the loan. | |
