Many people continue to rent for fear of the unknowns of home buying. We’ve shared some information on several great programs for first-time home buyers in our last post. But what if you don’t have a down payment? There are some programs which allow no money down, but certain criteria must be met.
Can I buy a house in Atlantic County with no money down?
USDA Loans are backed by the U.S. Department of Agriculture (USDA). These loans are also known as rural housing or rural development loans as they provide help with the purchase of houses located in certain rural areas and include zero down payment mortgage options for borrowers who qualify. Criteria for qualification includes household income, number of people living in the home and other factors such as approval of the property you are purchasing by area and size among other parameters.
USDA offers a helpful tool on their website to easily calculate the numbers you enter to determine your eligibility. Two types of single-family home loans are available with USDA, Single-Family Direct Home Loans and Single-Family Guaranteed Loans. Both programs have specific requirements for potential buyers which are outlined on the website. You can also search an address for eligibility to determine if a property in a small town or rural area of Atlantic County is covered. For example, just south of Egg Harbor, Corbin City is an area where there may be eligible homes due to its rural designation.
VA Loans programs assist active military members and veterans through the U.S. Department of Veterans Affairs. These loan programs don’t require private mortgage insurance and they have no down payment mortgage options. While these loan programs are provided by private lenders and mortgage companies, the VA guarantees a portion of the loans to get the borrowers the best rates possible. This program is also available to surviving spouses of military personnel and veterans as well.
The New Jersey HomeSeeker Program now offers $10,000 down payment assistance grants for residents of Atlantic, Burlington, Camden, Essex, Gloucester, Mercer, Passaic and Union Counties. This grant is available for first-time homebuyers who qualify and obtain first mortgage financing through the New Jersey Housing and Mortgage Finance Agency’s (NJHMFA) Homeward Bound mortgage program. Contact our office to see if you qualify.
For more information on no down payment mortgage options, check out this information from Investopedia. As always, Matt Haviland with The Haviland Group and Keller Williams Realty offers free consultation for first-time homebuyers. Contact Matt today at 609-338-3773 or via e-mail to find out how he can help you.
You’ve saved and planned and you’re ready to take the plunge into home ownership. There are many great mortgage choices for first-time homebuyers to consider. This list will break down some of the most popular options and provide links to find out more about the ones you may qualify for.
First Time Homebuyer Mortgage Options Around Atlantic County
FHA Loans are 15 or 30-year loans which are backed by the Federal Housing Administration under the U.S. Department of Housing and Urban Development (HUD). FHA Loans usually allow approval for borrowers with lower credit scores. These loans can also help through low down payment mortgages and lower closing costs. You’ll have to pay a slightly higher rate for mortgage insurance however, which can be paid upfront or annually.
USDA Loans are based on income for qualification and backed by the U.S. Department of Agriculture (USDA). These loans provide help with the purchase of houses located in certain rural areas and include zero down payment mortgage options for borrowers who qualify.
VA Loans are available to active military members and veterans through the U.S. Department of Veterans Affairs and are partially backed by the same. The goal with this program is to assist veterans in purchasing houses. These loans can include no down payment mortgage options and don’t require private mortgage insurance. They do require a one-time funding fee which is a small percentage of the total loan amount.
Good Neighbor Next Door assistance program offers loans for houses which have been foreclosed on at half price to qualified borrowers. This is an incredible program and as such has stringent guidelines. The Good Neighbor Next Door program is available only to borrowers who work in public service sectors as law enforcement professionals, teachers, emergency medical technicians (EMTs) or firefighters. The firefighters and EMTs must also work within the same jurisdiction as the house they are purchasing. These homes are offered in “revitalization areas” as defined by the FHA. These areas generally have a high number of foreclosed properties available.
Fannie Mae and Freddie Mac are government programs which help qualify first-time homebuyers who have low or moderate income with lenders. The Fannie Mae HomePath Ready Buyer Program in particular offers qualified first-time homebuyers up to 3% toward closing costs for HomePath Properties which were foreclosures under their loan programs.
New Jersey State and Atlantic County Residents can also benefit from some wonderful down payment assistance options outlined in our previous post about First Time Homebuyers Government Programs. Check out the blog post to find out more about first time government programs that are available. These are great offerings specifically for area residents.
The options are too many to list but there’s sure to be something for most any first-time homebuyer to benefit from. For more choices and information see this informative Bankrate article.
Matt Haviland with The Haviland Group and Keller Williams Realty always offers free consultation for first-time homebuyers. Contact Matt today at 609-338-3773 or via e-mail to find out how he can help you.