All You Need to Know About Zero Down Payment Mortgages & Its Types

Do you want to buy a new home but aren’t sure which mortgage loan is right for you? Choosing the right home loan is an important first step to making your dream of home ownership a reality. 

There are many mortgage loan programs and options to choose from, one of those options is a zero down payment home loan. Another option is to put a down payment on the home at the time of purchase. Don’t let the fear of not being able to qualify for a home purchase stop you from owning a home. Depending on your situation, the zero down payment mortgage loan might be the perfect option for you. Mortgage companies are knowledgeable when it comes to who can qualify for certain loan programs. They will help you determine if a specific loan program is right for you.  In some cases the mortgage company may require a down payment as part of the home loan.

Your mortgage loan representative will help you choose the right program. There are many types of mortgage loans to choose from based on your unique situation. Below are some common types of home loans that may include a zero down payment option: 

• Veterans Affairs (VA) loans: Veterans Affairs (VA) mortgage loans are offered by the US Department of Veteran Affairs designed specifically for those who have served or are serving in the military. VA loans typically offer low interest rates and have low closing cost.

• USDA loans: The United States Department of Agriculture (USDA) offers this mortgage loan for qualified individuals who want to purchase a residential home in designated rural areas. Its eligibility criteria are determined by home location, income level, and other requirements.

• (Federal Housing Administration) FHA Loans: FHA loans are designed for first time home buyers. These loans are specifically tailored to help first time homebuyers. This type of loan generally means a lower interest rate, lower down payment, and possible more relaxed credit scores to qualify. 

It is important to work with a mortgage professional who understands all of the mortgage loan programs available in your area. They can guide you into the program that best fits your situation. Community Lending Group has a team of highly qualified mortgage loan officers standing by ready to help you with the purchase of your new home. 

When the time comes for you to purchase a home, consult with us to see if there are any Zero to No Down Payment Home Loans in Utah that would work for you.