Back at the height of housing bubble, 100% financing was not a question that was ever brought up.

Not only did everyone expect to be able to purchase a home with no money down, regardless of credit score or income, but potential buyers were more concerned with more exotic loan features like “interest-only” payments, interest rate buydowns, and the ability to “skip” 2, 3 or even more payments after closing.

After the housing crash and the “credit tightenting” that ensued, many misconceptions entered the marketplace regarding what is required to obtain financing on a home. In most cases, potential buyers delayed there time-frame for purchasing a home in order to save up funds for a down-payment.

The reality is that even in today’s current market, there are multiple loan programs available designed to help people purchase a home with little to no money down and I like to refer to the different programs as “the big three.”

The first (and in my opinion, the best) loan program available is the USDA Rural Development Loan. This loan provides true 100% financing on qualified homes and has the cheapest mortgage insurance and cheapest 30-yr fixed interest rates as well! The only negative are that the home has to be located in a eligible rural area. You can search specific address at the website www.isitrural.com or contact us at 678-561-4342 or fill out the form on the right side of your screen.

The second program that allows for 100% financing is a Veteran’s Administration (VA) Loan. This is also a great loan program with no money down, and no mortgage insurance. The only downside is that applicants have to have their VA eligibilty which is obtainable after 2 years of service in the United States Military or Coast Guard.

The final program that we use all the time for customers who are trying to keep there cash to close as low as possible is the HUD $100 down loan program. While not exactly 100% financing, the HUD $100 down program allows customer to purchase a home with an FHA loan at an exceptionally lower down payment than the typically required 3.5% down payment. In fact, on a $100,000 sales price home a customer would save $3,400 in down-payment by taking advantage of the HUD $100 down program. The only down side to this program is that the special financing is only available on HUD foreclosures. A list of HUD foreclousures can be found at www.hudhomestore.com.

As always if you have specific questions about these or any other loan programs, please feel free to contact us at 678-561-4342 or by filling out the contact form on the right.