The housing crisis of 2007-08 hurt the real estate industry and people found it extremely difficult to arrange money for the down payments. Now, with the real estate market looking upwards, you can own a house using low mortgages and even the flexibility of getting a home loan with no money down.
In the past, the standard norm for down payment was about 20% of the total price. Most people especially students, people between jobs, and those starting new families found it a stupendous task to arrange for such large sums of money to pay upfront. But with the availability of options that simplify the loan process, owning a home has become easier. These include mortgage with low down payments as well as bad credit no money down mortgage. However, in order to qualify for these loan options, you need to fulfill the prescribed requirements.
The low down payment options include FHA loans with 3.5% down payment, Good Neighbor Next Door with $100 down payment, Conventional 97 Mortgage with 3% down payment, FHA 203k loan with 3.5% down payment, and Piggy Back Mortgage with 10% down payment. All these options have different criteria to qualify. For instance, Good Neighbor Next Door option is available only to law enforcement agents, firefighters, EMTs, or school teachers teaching up high school. In the Conventional 97 Mortgage, down payment of 3% can even be made by a third party provided they are related by blood or marriage to the customer.
However, if you’re financial situation allows you to look only for mortgage refinance no money down, consider the next few options. For people who do not have enough savings, to power the down payment, can find help in the form of refinance mortgage with no money down. These loan options have stricter requirements than the above mentioned low down payment loan options but they help in getting a home loan with no money down.
The two most popular mortgage refinance no money down options are the USDA rural development loans and VA loans. The United States Department of Agriculture offers 100% financing and the loan has the lowest payments and insurance requirements. You can qualify for this loan if your income does not exceed the local media by over 15%. The VA loans offered by the Department of Veterans Affairs are available only to active or retired members of the military, or survivors of the deceased.