How To Buy A Home With Zero Money
What home buyers look like after they get settled
A) You are a veteran
B) You are looking at buying a home in a USDA Qualified area
and your income meets the USDA Rules
There may be other ways to buy without any cash out of your pocket, but these are two of the best ways to become a home owner, that the majority of people will qualify for.
VA Loans- You must be a veteran to qualify for this loan program. The program represents the best mortgage loan product available. It features:
1) Great Rates
2) Zero Down
3) No monthly mortgage insurance
4) Reduced fico credit score requirements
5) Reduced closing costs
The only negatives are that:
1) You pay a one time up front mortgage premium. This premium can be financed into the loan.
2) The seller is required to pay some of your costs. Not all sellers will do this.
3) There is a VA review of the appraisal that causes the loan to take up to two weeks longer than FHA & Conventional loans to consumate.
Other than these minor negatives, the VA loan rocks!
USDA Loans-The USDA Rural Development Loan is not as familiar to most people as other mortgage options.
Check Your USDA Eligibility By Clicking Here
The USDA is a government subsidized program that helps people buy homes in designated rural areas that may not be able to buy a home under other mortgage programs.
The programs evaluates your qualification with a simple tool which is linked just below.
Besides the qualification of location and income, three other areas are considered when evaluating your application.
1. Your Credit
Yes, your credit is an obvious number 1 and it is the most important aspect of your loan decision. It is one factor that you can actually have control over.
Length of Credit History
While the talk of the town on the credit front is mostly about credit scores and optimizing your credit to get the highest credit score, there is one other credit factor that is often overlooked; Length of Credit History.
A credit score is supposed to be an indicator of the quality of your credit, but many times a Thin credit profile may artificially skew a score. For this reason most USDA Rural Development lenders do have a minimum requirement for the Length of Credit History.
But I Dont Have A Credit History &
If you are one of the many Americans with a Thin credit profile, meaning that you just don’t have a credit history, you can still get a USDA Rural Development Loan. You can actually build a credit profile by providing a history of four sources of alternative credit that have been active for at least 12 months.
What qualifies as Alternative Credit?
Increasing consistent deposits to a savings account
Rent and Housing payments
Utilities (electricity, water, gas, cable, phone, etc.)
Insurance (medical, auto, life, renters, etc.)
Local stores (department stores, furniture, etc.)
If you feel you may qualify for one of these two awesome mortgage programs, I encourage you to contact our office at 281-348-9899. You will find that we employ very friendly folks.