“FAQ #10 ……… Are There Any No Money Down Programs Available For Me?”
My Final Frequently Asked Question blog in this series of the 10 most FAQ’s that I am asked, is a question that I am
Real Estate Mortgage Programs with no money down
asked frequently by both First Time Buyers and Existing Homeowners.
“FAQ #10 ……… Are There Any No Money Down Programs Available For Me?”
This is a question that I expect to get from First Time Homebuyers, but was a little surprised at first when I started to be asked this from Existing Homeowner. But I should not have been surprised that Existing Homeowner were asking this question more and more, because property values have been decreasing, and many Existing Homeowner want to take advantage of the lower prices to purchase a bigger home. Because of property values decreasing many of the Existing Homeowners find themselves basically breaking even on the sale of their house, and no money to use towards the new purchase.
Fortunately their are still a couple of Mortgage Programs available to both First Time Buyers and Existing Homeowners here in Connecticut, that do not require a downpayment, and one that has an option for them to borrow the Downpayment and Closing Costs. These programs do have requirements that Borrowers have to meet, so they are limited as who can qualify. I will not go into detail here on each program, but I will provide a links to blogs I have written in the past on each one.
VA Mortgages are a true 100% financing mortgage. VA does not require any downpayment, and no PMI. VA Mortgages are available to both First Time Buyers and Existing Homeowners, but are limited to Military Veterans that are able to obtain a Certificate of Eligibility.
USDA/Rural Mortgages are also a true 100% financing mortgage, that is available to both First Time Buyers and Existing Homeowners, but does require a very small PMI payment. USDA/Rural Mortgages are also limited to certain geographic areas within each State, so borrowers need to check their USDA State Map to see which towns this mortgage program is available in.
Connecticut Housing Finance Authority (CHFA) is a subsidize mortgage program that is available to all First Time Buyers that are within CHFA Income Limits. But CHFA Mortgages are also available to Existing Homeowners who are purchasing within a CHFA designated Targeted Area. CHFA is not a true 100% financing mortgage program, because it does require a 3.5% downpayment, but it does allow eligible borrowers to borrow the Downpayment and Closing Cost on a second loan at the same subsidized interest rate.
As I stated above more details on each of these programs are available by clicking on the links that I have provided to each one.
These are the programs that are available here in Connecticut, but there maybe other Mortgage Programs that are available in other States. Borrowers should check with a local Loan Originator to find out what 100% finance Mortgage Programs are available to them. “FAQ #10 ……… Are There Any No Money Down Programs Available For Me?”
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This blog post is courtesy of my guest blogger, George Souto. About the author and my Guest Mortgage blogger:
George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com.
Ginny Lacey Gorman is your go to Rhode Island Real Estate Agent for RI real estate in North Kingstown RI and beyond…knowing the geographic area, schools, happenings, important tidbits of information and businesses well.
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Knowing what is available and how to qualify for it can make all the difference in whether consumers become homeowners. This is a good list that is especially helpful for new buyers who really do not know where to begin.