Can You Get a Loan Without a Down Payment?

Can you get a loan without a down payment?

2 Answers

Times have changed regarding loan programs and downpayment requirements. Several years ago prior to the economic crisis and the subsequent related housing meltdown there were more loose lending standards. Due to the tightening of guidelines the only 0 down payment programs available are government programs.

Currently, there are only a couple of loan programs available with no downpayment. The VA/ Veterans Administration offers a zero  down program however you need to be a veteran to qualify for this program. The USDA / US Department of Agriculture offers a Rural development loan that is zero down but there are geographical guidelines/ limitations and income eligibility guidelines. The USDA program is in selected rural ares nationwide.

Yes, government backed loans are available. As mentioned above VA & USDA. Now depending on your area, you may want to speak with a real estate agent and find out if there are any USDA/RD homes that are eligible in your area.  Now rememeber down payment does not mean closing costs.  Since we are in a buyers market you could easily get a seller to cover up to 6% of your closing costs.  If you were to obtain a USDA loan and obtain seller concessions then you would have a comlete 0 percent down loan and 0 closing costs.

Many borrowers get the two confused. Just remember that down payment is the percentage you put towards the sales price. Closing costs are the fees associated with buying the home.