No Money Down Loan Programs

Federal Housing Administration Insured Loan Program

Follow this link for information about FHA loans on single family, two family as well as three and four family dwellings (FHA 203(b) program). Mortgage loans insured under this program can be combined with a down payment assistance programs such as non-profit gift foundation grants to potentially enable deserving families to purchase a home up to the FHA loan limits with no out of pocket costs. The main requirement is that the home buyer have reasonable credit scores and credit report, and a steady job with sufficient income to qualify for the loan.

Down Payment Gift Foundation Programs

Follow this link for information about down payment and closing cost assistance through various charitable gift foundation grant programs such as Nehemiah program. These programs make funds available to home buyers to cover the down payment and closing costs associated with a home purchase. Typically, these programs are used in conjunction with the FHA loan program and selected conventional loan programs to enable a home buyer to complete a home purchase with no out of pocket costs.

Veteran's Administration Guaranteed Loan Program

Follow this link for information regarding VA loans. The Veterans Administration of the Federal Government provides loan guarantees for qualified veterans to purchase a home. The program is designed to enable qualified vetrans to purchase a home valued up to $240,000 with no money down and no closing costs. This one of a very few mortgage programs that enable a home purchase with no out of pocket expenses. One of the advantages of this program is that no mortgage insurance (pmi) is required.

Conventional Zero Down Payment Loan Programs

Various conventional loan programs sponsored by Fannie Mae and Freddie Mac are available that require home buyers (including first time home buyers) put no money down when purchasing a home. However, these programs are available up to conforming loan limits and typically require the home buyer to contribute a minimum of 3% of the purchase price to closing costs from their own funds. These loans are available in 30 year fixed rate loans and various adjustable rate loans. Depending on the strength of the borrowers credit report and credit scores, these loans may be done as interest only loans with very favorable monthly payment characteristics. In addition, it may be possible to structure 80% first mortgage and a 20% second mortgage or home equity loan (80 20 loans) in order to eliminate mortgage insurance (PMI). Despite the high loan to value (LTV) of these loans, they normally are available at an attractive mortgage rate.

Please select Get Pre-Approved from the menu on the left to determine how much you may be able to purchase under any of these programs. All of these programs are available under NJ mortgage guidelines, NY mortgage guidelines, and PA mortgage guidelines.