Buying A Home With a 0 Down Mortgage
Many would-be home owners have trouble coming up with the money for a down payment on a home. This is often true for first time home buyers as well as those whose homes have not grown in value in the last few years. Depending on the housing market, a standard 20% down payment can easily be $50,000 or more – much more than many prospective homebuyers can afford.
Let eLEND Help
As a mortgage lender, eLEND provides dedicated and knowledgeable Mortgage Loan Originators who can help you find affordable home financing options that are right for you. Using educational resources and the latest technology, we help simplify the mortgage process for our customers while providing consistent and dedicated service with a personal touch.
When you consult with our mortgage specialists, we’ll walk you through all the possibilities for a low down payment mortgage. These include:
- VA Loans – If you’re a veteran or active duty military personnel, you may qualify for a VA home loan with a low down mortgage that is backed by the Department of Veterans Affairs.
- USDA Mortgages – For borrowers in rural parts of the country, the US Department of Agriculture offers USDA Rural Housing Loans with a low down mortgage option to promote homeownership and community growth in under-developed areas.
- FHA Loans – While it does not offer a 0 down mortgage, the Federal Housing Administration (FHA) makes it possible to purchase a home with as little as 3.5% down. These loans are especially popular among people applying for a first time home loan.
Refinance Your Home
A 0 down mortgage is not just for new home purchases – you may be able to refinance your existing home with a low or 0 down mortgage as well. If you qualify for a USDA or VA mortgage, you may be eligible to refinance as much as 100% of the value of your home, while FHA loans may offer a refinance rate of as much as 97.75%. These percentages are for a refinance loan where you take a new loan for the exact amount of your existing mortgage. Refinancing to take out additional cash based on your home equity may be limited to a lower percentage of the property value.