Zero Down Mortgages Now Available Through USDA Home Loan Program
11/9/210
It's almost impossible to find a zero-down payment home purchase mortgage today, though such loans were common just a few years ago. Today, the only true zero-down loan program that remains is the VA home loan program, which allows some qualifying veterans to take out loans with no money down.
But the Senate has recently approved a bill that will bring the USDA Single Family Housing Guaranteed Loan Program back into action with new funding. The program is similar to the FHA mortgage program in that it makes mortgages available to lower income families. These mortgages require no money down at closing.
A 3.5% participation fee for the program is charged up front, but this amount is typically rolled into the loan itself. This is similar to the VA funding fee. Private mortgage insurance is not required for a USDA home loan, which is not the case with FHA loans. This makes the USDA mortgage program an excellent choice for first time home buyers with limited income.
You still need to do your homework, however. As with other loan programs, USDA mortgages will be provided through private lenders who will offer many varied rates and terms. Compare mortgage rates and other details to find the best deal. You should have no trouble saving significant money on a new USDA zero-down home loan.
