The collapse of the housing bubble affected banking practices and increased the difficulty of loan approval. Nearly all loans today require a down payment when closing, but there are two loan programs with 100 percent financing.
Veteran Affairs Loans
VA loans are available for veterans and presently serving military members. VA loans guarantee no-down payment mortgages through private lenders and are guaranteed by the VA. The borrower does pay a funding fee which varies based on regular military service or serving in the Reserves or National Guard. A certificate of eligibility from the VA is required to apply for a VA loan and can be obtained by the borrower or by the lender on their client’s behalf.
The USDA Rural Development Single Family Housing Guaranteed Loan Program is designed to help low income earners achieve homeownership with 100 percent financing opportunities. To qualify for a rural development loan, applicants must apply in an eligible rural area and meet other loan terms like interest rates and housing cost ratios.
Eligible property types include existing homes, new construction, PUD’s, and manufactured homes. Closing costs, eligible repairs, and other fees may be included in the loan. The loans are not limited to first time home buyers, and potential buyers must apply through an approved lender.
Contact us at Choice Lending Services to discuss 100 percent financed loan programs.