The only loan type out there with NO down payment is a USDA loan. The problem with those loans is: you can't get a USDA loan in an urban or suburban area. The next loan up from there requires a 3.5% down payment with a HUGE PMI (mortgage insurance) premium tacked on to it for the life of the loan, often adding $100+ to your monthly bill. BUT now there is a new loan program out there being rolled out by Wells Fargo. This is the email I just received from one of my preferred lenders and it reads:
Help more homebuyers achieve their home financing goals
With our Community Development Mortgage Program
The Wells Fargo Community Development Mortgage Program(CDMP) is designed to make homeownership more attainable for low-to-moderate income buyers.
Homebuyers can benefit from:
Down payment as little as 2%
Lower out-of-pocket costs
Allowable down payment and closing cost assistance
Fixed-rate payment stabilty
NO PMI
Homebuyers may qualify at 80% or below Area Median Income limits with a single 42% debt-to-income ratio.
Owner occupied only.
Call or email me if you need any further information and I will put you in contact with the right people. This is GREAT news for homebuyers with little or no $$$$- hurry before the home prices and interest rates go up again!
