If you have a good job with steady income, decent credit, and no credit card debt, you might want to start looking for a house to buy, but you might wonder if you could qualify for a loan if you do not have money to put down for a house. There are loan programs that you might qualify for in this position, but you will need to talk to an independent mortgage broker about getting a loan. Here are several things to understand about getting a mortgage with no money to put down.
A Broker Will Review Your Financial Situation
An independent mortgage broker is a person who is an expert with mortgages. Brokers not only know the rules of all loan types, but they also have relationships with many different lenders, and this makes it easier for a person to get a loan if they do not have money to put down. When a broker looks at your personal situation, he or she can tell you if you will likely qualify for a loan and what type you may qualify for. The broker might also give you suggestions and tips to help you improve your financial situation so that you will qualify for a loan if you currently do not.
You Might Qualify for a VA Loan or a USDA Loan
There are two loan types that allow people to buy homes without putting any money down, and these are VA loans and USDA loans. A VA loan is limited to people who are or were in the military. If you were never in the military, you would not qualify for this option. A USDA loan does not have stipulations like this, though, so it might be a good option for you. With a USDA loan, you will have to pay a fee of around 1% to get the loan through the USDA, and you will have to pay mortgage insurance until your loan is paid off. A broker can help you understand how much this would cost.
You Could Also Consider an FHA Loan
One other option you could consider is an FHA loan; however, you would need a little bit of money for the down payment. The amount is around 3.5% of the price of the house. While this option is not great for a person with absolutely no money to put down, it is a good option for people with a little to put down.
There are ways to get a loan to buy a house even if you do not have money to use as your down payment, but you will need to get help from independent mortgage broker services if you are in this position and want to buy a house.Share
1 October 2018
I always wanted to buy my own home and after saving enough money for a down payment, I decided that it was time. Before I started looking at houses, I talked with a loan officer about financing. I wanted to know how much money I could borrow so I could look at houses in that price range. I was very happy after my meeting at the loan company and I was ready to start house hunting. My name is Jarod Spangler and I'm now a homeowner. If you have the dream of owning your own home, I think you'll find my blog of help to you. I've documented my journey of saving money, securing a loan and purchasing a house. To help you become a homeowner too, I'm offering advice and tips of things that I've learned along the way.