Is 100% Financing Still Available?

Many prospective homeowners are currently looking to take advantage of the three “I’s” in our real estate market.  There is a great deal of Inventory on the market right now, including homes with greatly reduced prices.  We are experiencing historically low Interest Rates where buyers can lock in a 30 Year Fixed mortgage between 4.875% and 5.125%.  Finally, there is a great Incentive for first time buyers with the government $8,000 first time homeowner tax credit.  What is a future homeowner to do if they want to buy right now, but unfortunately do not have the necessary down payment saved up to qualify for a conventional or FHA mortgage?  Are there any 100% financing options available in today’s market?

Yes, 100% financing options do still exist!  I will propose three options for any potential buyer to research in order to see if these loan programs fit the needs currently being desired!

VA Loans (Veteran Affairs) – VA will allow 100% financing for any buyer who is eligible to use their VA benefits.  Another great advantage of a VA loan is they do not require mortgage insurance.  This can help a buyer qualify for a lower monthly payment and still take full advantage of this government program sponsored by FHA.  VA loan scenarios are very buyer specific, so if you would like to discuss these options please contact me so we can design the best loan structure that will work for you.

USDA Loans (United States Department of Agriculture) – USDA offers 100% financing options for homes located within USDA lending boundaries.  This loan program is designed for homes located within agricultural or rural areas.  You would be surprised how many homes are eligible for this loan program.  If you are interested in purchasing around the outskirts of the Denver Metro Area this might be the loan program for you!  USDA does have income restrictions; however they are quite reasonable when compared to other similar federal or state financing programs.  Through the USDA website you can learn more about the specifics of this program and there is even a page where you can input the address of the home you are interested in purchasing to immediately find out if it is USDA eligible.

USDA Loan Program Overview
USDA Property Eligibility Search

$100 Down Payment Program (HUD Sponsored Program) – All right, it’s not quite 100% financing but a $100 down payment is tough to beat.  HUD sponsors a loan program where qualified buyers can purchase a home with as little as one hundred dollars down!  This program is for HUD homes only, and you can even finance some minor fix up or repair costs into the loan if approved through HUD.

Waterstone Mortgage is approved to offer all three of these options to our clients.  We have experienced great success with each of these programs as it is just another avenue we use to help all of our clients obtain their dream of being homeowners.  If you have any questions or want to see if you qualify for these loan programs please feel free to contact me for a free mortgage consultation.

Don’t miss out on today’s extraordinary buyer friendly housing market, take advantage of the three “I’s” and put yourself in a position to purchase a home while these unbelievable opportunities still exist!