We accept lower credit scores.<\/h3>Get a Quote Today<\/a><\/div>\nTypes of No Down Payment Mortgages<\/b><\/h2>\n
You can get a zero down payment home loan using either a VA loan or USDA loan. The following is a look at both types of loans, their benefits, and what you\u2019ll need to qualify.<\/span><\/p>\nVA loans<\/b><\/h3>\n
VA loans are available to active-duty military, veterans, and surviving spouses who meet all necessary qualifying requirements. The VA loan program is a popular option among qualifying borrowers because it doesn\u2019t require a down payment, limits certain closing costs, and offers mortgages at relatively low rates.\u00a0 <\/span><\/p>\nVA loan benefits<\/b><\/h4>\n
VA loans offer several significant advantages for eligible borrowers, making them an attractive option for veterans and active service members looking to purchase a home:<\/p>\n
\n- No down payment required<\/span><\/li>\n
- Lower interest rates<\/span><\/a> compared to conventional mortgages<\/span><\/li>\n
- No private<\/span> mortgage insurance<\/span><\/a> (PMI) needed<\/span><\/li>\n
- Limited <\/span>closing costs<\/span><\/a><\/li>\n
- VA loan rates<\/span><\/a> are competitive due to government backing<\/span><\/li>\n
- Increased affordability for qualifying borrowers<\/span><\/li>\n<\/ul>\n
Estimate how much your monthly payments would be with a VA loan using our free<\/span> VA loan calculator<\/span><\/a>. You can also use our VA loan affordability calculator to see how much home you can afford with this type of financing.<\/span><\/p>\nVA loan qualification requirements<\/b><\/h4>\n
To qualify for a VA loan, you must meet both the VA’s eligibility criteria and your lender’s specific requirements. Here’s an overview of what you’ll need:<\/p>\n
VA eligibility requirements:<\/p>\n
\n- Military status:\u00a0<\/strong>Applicants must be active-duty personnel, veterans, or eligible surviving spouses.<\/li>\n
- Service duration:\u00a0<\/strong>Fulfill the minimum service time requirements, which differ depending on when you served.<\/li>\n
- Intended use:<\/strong>\u00a0Commit to using the purchased property as your primary residence.<\/li>\n
- Documentation: <\/b>Secure a <\/span>Certificate of Eligibility<\/span><\/a> (COE) through the Department of Veterans Affairs.<\/span><\/li>\n<\/ul>\n
Lender requirements (may vary by lender):<\/p>\n
\n- Minimum credit score (500<\/span>+<\/span> at Griffin Funding)<\/span><\/li>\n
- Proof of income<\/span><\/li>\n
- Debt-to-income ratio within acceptable limits<\/span><\/li>\n
- Pest inspection<\/span><\/a> and <\/span>VA appraisal<\/span><\/a><\/li>\n
- No recent major credit events or bankruptcies (or meet additional terms if applicable)<\/span><\/li>\n<\/ul>\n
We recommend applying for\u00a0VA loan pre-approval<\/a>\u00a0before you start house hunting to help you understand your budget.<\/p>\nUSDA Loans<\/b><\/h3>\n
USDA loans<\/span><\/a> are offered by the United States Department of Agriculture. They\u2019re also known as rural <\/span>development loans<\/span> because they\u2019re used for buying homes <\/span>and agricultural properties<\/span> in rural areas of the country. The program offers two types of loans for single-family housing\u2014direct and guaranteed loans\u2014and is intended to help individuals making below a certain income purchase homes in rural areas.<\/span><\/p>\nUSDA loan benefits<\/b><\/h4>\n
Here are the key benefits of USDA loans:<\/p>\n
\n- No down payment required<\/li>\n
- Competitive interest rates<\/li>\n
- No private mortgage insurance (PMI)<\/li>\n
- Backed by the federal government<\/li>\n
- Upfront fee of 1% of the total financed amount, due at closing<\/li>\n
- Low annual fee of 0.35% of the loan balance, included in monthly payments<\/li>\n<\/ul>\n
While USDA loans have appealing benefits, make sure to compare the <\/span>pros and cons<\/span><\/a> before pursuing this type of financing. <\/span>For example, USDA loans are only available in specific rural and suburban areas, so the home you\u2019re interested in may not qualify. Additionally, there are income limits that restrict eligibility.<\/span><\/p>\nUSDA loan qualification requirements<\/b><\/h4>\n
In order to qualify for a USDA loan, the property you\u2019re purchasing has to be located in an area that <\/span>the USDA classifies as rural<\/span><\/a>. Additionally, you must meet the following requirements:<\/span><\/p>\n\n- U.S. citizenship is required<\/li>\n
- 600+ credit score<\/span>\u00a0<\/span><\/li>\n
- Three years since declaring bankruptcy or experiencing foreclosure<\/li>\n
- Adjusted income cannot exceed 115% of the chosen area\u2019s median income based on your family size<\/li>\n
- Borrowers must meet a minimum DTI ratio<\/li>\n<\/ul>\n
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<\/p>\n
While VA loans and USDA loans are the only two true zero down payment mortgage programs, there are other types of financing that allow you to buy a home with a low down payment.\u00a0<\/span><\/p>\nFHA loans<\/b><\/h3>\n
Federal Housing Administration<\/span><\/a> (FHA) loans<\/span> are federally-backed mortgages that have less stringent eligibility requirements<\/span> compared to a USDA loan<\/span><\/a> or VA loan<\/span>. An FHA loan can be used to buy a home that you intend to use as your primary residence. If you qualify for this loan program, you can potentially secure a mortgage with as little as 3.5% down.<\/span><\/p>\nWhile FHA loans can be great for home buyers that don\u2019t have a lot of capital on hand for a down payment, they come with other costs that are worth considering. One of the downsides of FHA loans, for instance, is the mortgage insurance premiums (MIP) you\u2019ll have to pay. MIP is required for all FHA loans regardless of your down payment and you\u2019ll typically be required to pay it for the life of the loan.<\/p>\n
Conventional loans<\/b><\/h3>\n
While you may be under the impression that you need a 20% down payment to get a <\/span>conventional loan<\/span><\/a>, that\u2019s not always the case. In reality, conventional loans can offer flexible down payment requirements, although you\u2019ll have to meet somewhat stringent credit and income requirements in order to qualify.<\/span><\/p>\nY<\/span>ou can expect the minimum down payment for a conventional mortgage to be around 3%, but the location of the house and your property ownership history can push the minimum higher. <\/span>The <\/span>average down payment<\/span><\/a> for a home buyer typically falls around 13%.<\/span>\u00a0<\/span><\/p>\nDSCR loans<\/strong><\/h3>\n
VA loans<\/b><\/h3>\n
VA loans are available to active-duty military, veterans, and surviving spouses who meet all necessary qualifying requirements. The VA loan program is a popular option among qualifying borrowers because it doesn\u2019t require a down payment, limits certain closing costs, and offers mortgages at relatively low rates.\u00a0 <\/span><\/p>\n VA loans offer several significant advantages for eligible borrowers, making them an attractive option for veterans and active service members looking to purchase a home:<\/p>\n Estimate how much your monthly payments would be with a VA loan using our free<\/span> VA loan calculator<\/span><\/a>. You can also use our VA loan affordability calculator to see how much home you can afford with this type of financing.<\/span><\/p>\n To qualify for a VA loan, you must meet both the VA’s eligibility criteria and your lender’s specific requirements. Here’s an overview of what you’ll need:<\/p>\n VA eligibility requirements:<\/p>\n Lender requirements (may vary by lender):<\/p>\n We recommend applying for\u00a0VA loan pre-approval<\/a>\u00a0before you start house hunting to help you understand your budget.<\/p>\n USDA loans<\/span><\/a> are offered by the United States Department of Agriculture. They\u2019re also known as rural <\/span>development loans<\/span> because they\u2019re used for buying homes <\/span>and agricultural properties<\/span> in rural areas of the country. The program offers two types of loans for single-family housing\u2014direct and guaranteed loans\u2014and is intended to help individuals making below a certain income purchase homes in rural areas.<\/span><\/p>\n Here are the key benefits of USDA loans:<\/p>\n While USDA loans have appealing benefits, make sure to compare the <\/span>pros and cons<\/span><\/a> before pursuing this type of financing. <\/span>For example, USDA loans are only available in specific rural and suburban areas, so the home you\u2019re interested in may not qualify. Additionally, there are income limits that restrict eligibility.<\/span><\/p>\n In order to qualify for a USDA loan, the property you\u2019re purchasing has to be located in an area that <\/span>the USDA classifies as rural<\/span><\/a>. Additionally, you must meet the following requirements:<\/span><\/p>\n Take charge of your financial wellness and achieve your homeownership goals While VA loans and USDA loans are the only two true zero down payment mortgage programs, there are other types of financing that allow you to buy a home with a low down payment.\u00a0<\/span><\/p>\n Federal Housing Administration<\/span><\/a> (FHA) loans<\/span> are federally-backed mortgages that have less stringent eligibility requirements<\/span> compared to a USDA loan<\/span><\/a> or VA loan<\/span>. An FHA loan can be used to buy a home that you intend to use as your primary residence. If you qualify for this loan program, you can potentially secure a mortgage with as little as 3.5% down.<\/span><\/p>\n While FHA loans can be great for home buyers that don\u2019t have a lot of capital on hand for a down payment, they come with other costs that are worth considering. One of the downsides of FHA loans, for instance, is the mortgage insurance premiums (MIP) you\u2019ll have to pay. MIP is required for all FHA loans regardless of your down payment and you\u2019ll typically be required to pay it for the life of the loan.<\/p>\n While you may be under the impression that you need a 20% down payment to get a <\/span>conventional loan<\/span><\/a>, that\u2019s not always the case. In reality, conventional loans can offer flexible down payment requirements, although you\u2019ll have to meet somewhat stringent credit and income requirements in order to qualify.<\/span><\/p>\n Y<\/span>ou can expect the minimum down payment for a conventional mortgage to be around 3%, but the location of the house and your property ownership history can push the minimum higher. <\/span>The <\/span>average down payment<\/span><\/a> for a home buyer typically falls around 13%.<\/span>\u00a0<\/span><\/p>\nVA loan benefits<\/b><\/h4>\n
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VA loan qualification requirements<\/b><\/h4>\n
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USDA Loans<\/b><\/h3>\n
USDA loan benefits<\/b><\/h4>\n
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USDA loan qualification requirements<\/b><\/h4>\n
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Download the Griffin Gold app today!<\/h3>
\r\nUse invitation code: GRIFGOLD<\/b> to register.<\/p><\/a><\/a><\/div><\/div>\nLow Down Payment Home Loans<\/b><\/h2>\n
<\/p>\nFHA loans<\/b><\/h3>\n
Conventional loans<\/b><\/h3>\n
DSCR loans<\/strong><\/h3>\n