FHA Loans

FHA Home Loans offer the most opportunities for current homeowners and future homeowners to get their home mortgage with little to no money down.

By utilizing the Americas Home Buyer Solution One Percent Down gift program any home eligible for an FHA government mortgage statewide in the eligible states can now be purchased with as low as 1% down. The minimum down payment requirement for a FHA loan is 3.5%. The program allows qualified borrowers utilizing an FHA 30 year fixed rate loan to receive a qualified gift of up to 2.5% of a home sales price to be used for down payment and/or closing cost assistance. This gift never has to be paid back. The better news is the remaining 1% required can also be a Down Payment Assistance gift from a family member, employer, union, or any other HUD approved source. Americas Home Buyer Solution One Percent Down gift program is offered exclusively through The Lending Company, a Mortgage Bank.

For the first time in history with the equivalent of 1 months rent and 1 months security deposit (something every renter needs when their lease expires) and Americas Home Buyer Solution gift program, they can own a home instead.

$0 Down Home Loans and Down Payment Assistance Grants

Most home buyers do not realize that they can purchase a home with little or no money down.  Some of the programs offer money that can be used for the down payment and closing costs on the purchase of your home? Some of the loan programs and down payment assistance grants offer Free money for first time home buyers who need help with the down payment and closing costs. This money comes in the form of government grants.

Listed on this page are links to $0 down loans, first time home buyer grants, Federal tax credits and other important loan information.

In many states the grant amounts are in the multiple thousands of dollars. This is free money that shouldn't be passed up! Simply go to your state's grant page to get the necessary information. If your state is not listed below, it is because there is no state agency that provides grants to first time home buyers. That does not mean that you have no access to first time home buyer grant money.

Home Buyer Grants

Besides the state programs, there are federal funds and grants available to would be home buyers through the Homes and Communities program of the United States Department of Housing and Urban Development.

Almost all of the down payment assistance programs, tax credits and housing grants must run under an FHA loan. Getting pre-qualified for an FHA loan is the best place to start before searching for the right DPA program. 

Every first time home buyer should investigate the Federal Housing Tax Credit, where first time home buyers receive a $7500 Credit for their down payment assistance. You can visit the website by going here: FHTC.  Also, there is a website that has a complete list of all grant programs available through the United States Federal Government from the American Dream Down Payment Assistance Act, home buyers should plan to spend the required time investigating to determine how many individual grants they may qualify for. You can visit the website by going to ADDPA.com

Other Zero Down Loans

Reverse Mortgages and VA Loans are other loans that do not require a down payment - a Reverse Mortgage is one of the most popular loans today for people that are close to retirement age.  VA Loans are for our men and women who served on our armed services.

 

 

 

 

 

Reverse Mortgages are new, until recently, there were two main ways to get cash from your home:
• you could sell your home, but then you would have to move; or
• you could borrow against your home, but then you would have to make monthly loan repayments.

Now reverse mortgages give you a third way of getting money from your home. And you don't have to leave your home or make regular loan repayments.

A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live there. It can be paid to you all at once, as a regular monthly advance, or at times and in amounts that you choose. You pay the money back plus interest when you die, sell your home, or permanently move out of your home.

How They Work

Reverse mortgage loans typically require no repayment for as long as you live in your home. But they must be repaid in full, including all interest and other charges, when the last living borrower dies, sells the home, or permanently moves away.

Because you make no monthly payments, the amount you owe grows larger over time. As your debt grows larger, the amount of cash you would have left after selling and paying off the loan (your "equity") generally grows smaller. But you generally cannot owe more than your home's value at the time the loan is repaid.

Reverse mortgage borrowers continue to own their homes. So you are still responsible for property taxes, insurance, and repairs. If you fail to carry out these responsibilities, your loan could become due and payable in full.

What You Get

These loans can be paid to you all at once in a single lump sum of cash, as a regular monthly loan advance or as a credit line that lets you decide how much cash to use and when to use it. Or you may choose any combination of these payment plans.

Some reverse mortgages are offered by state and local governments. These "public sector" loans generally must be used for specific purposes, such as paying for home repairs or property taxes. Other reverse mortgages are offered by banks, mortgage companies, and savings associations. These "private sector" loans can be used for any purpose.
 
The amount of cash you can get from a private sector reverse mortgage generally depends on your age, your home's value and location, and the cost of the loan. The greatest cash amounts typically go to the oldest borrowers living in the most expensive homes on loans with the lowest costs.

The amount of cash you can get also depends on the specific reverse mortgage plan or program you select. The differences in available loan amounts can vary greatly from one plan to another. Most homeowners get the largest cash advances from the federally insured Home Equity Conversion Mortgage (HECM). HECM loans often provide much greater loan advances than other reverse mortgages.

VA Loans:

 

 

 

 

 

The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is usually lower than the rate charged on other types of mortgage loans. For VA housing loan purposes, the term "veteran" includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses.

6 STEPS IN ARRANGING A VETERAN’S GUARANTEED LOAN

1. Find the property suitable for your needs.

2. Go to a lender and apply for the loan.

3. Present your discharge or separation papers relating to latest period of service and/or a

Certificate of Eligibility.

4. Property is appraised by approved appraiser.

5. Estimate of property's reasonable value is determined.

6. If application is approved, you get the loan.

 

 

 

 

 

1. How much is the guaranty?

VA will guarantee up to 50 percent of a home loan up to $45,000. For loans between $45,000 and $144,000, the minimum guaranty amount is $22,500, with a maximum guaranty, of up to 40 percent of the loan up to $36,000, subject to the amount of entitlement a veteran has available. For loans of more than $144,000 made for the purchase or construction of a home or to purchase a residential unit in a condominium or to refinance an existing VA-guaranteed loan for interest rate reduction, the maximum guaranty is the lesser of 25% or $104,250 which is 25% of the Freddie Mac conforming loan limit for a single family residence for 2007. This figure will change yearly. (For information about entitlement see "Service Eligibility" below.)

2. Is $36,000 the biggest loan a veteran can get?

No. You may generally borrow up to the reasonable value of the property or the purchase price, whichever is less, plus the funding fee, if required. For certain refinancing loans, the maximum loan is limited to 90 percent of the value of the property, plus the funding fee, if required. To determine the reasonable value, VA requires an appraisal of the property. (Also see "Downpayment Requirements" below.

3. What is the maximum VA loan?

There is no maximum VA loan, except that the loan cannot exceed the lesser of the appraised value or purchase price, plus VA funding fee and energy efficient improvements, if applicable. However, lenders usually won’t make a no-downpayment loan larger than $417,000 ($625,500 in Alaska, Hawaii, Guam, and U.S. Virgin Islands) due to secondary market limitations.

4. Must the loan be repaid?

Yes. A VA guaranteed loan is not a gift. It must be repaid, just as you must repay any money you borrow. The VA guaranty, which protects the lender against loss, encourages the lender to make a loan with terms favorable to the veteran. But if you fail to make the payments you agreed to make, you may lose your home through foreclosure, and you and your family would probably lose all the time and money you had invested in it. If the lender does take a loss, VA must pay the guaranty to the lender, and the amount paid by VA must be repaid by you. If your loan closed on or after January 1,1990, you will owe the Government in the event of a default only if there was fraud, misrepresentation, or bad faith on your part.