There are two home loans available today to purchase a home with no money down, YES no money down home loans. I am talking about the VA and USDA-RD home loan programs. These 2 programs make up a small portion of all home loans that are offered to purchase a single family, 2 to 4 units, Condos, Townhomes and manufactured housing, why is that? I do not think many home buyers looking to purchase a home know about these programs nor do I think enough loan officers know enough about the programs to offer them to you. This is where I come in to bridge that gap, I know and offer these 2 great home loan programs with no money in California.
Lets explore both the VA and USDA-RD home loans in California:
The VA home loan is the best performing home loan program (this with a no money home loan) and provides you with more favorable terms, including:
- No down payment as long as the sales price doesn’t exceed the appraised value
- No private mortgage insurance premium requirement
- VA rules limit the amount you can be charged for closing costs
- Closing costs may be paid by the seller
- The lender can’t charge you a penalty fee if you pay the loan off early
- VA may be able to provide you some assistance if you run into difficulty making payments
- You don’t have to be a first-time homebuyer
- VA-backed loans are assumable, as long as the person assuming the loan qualifies
- VA Funding Fee waived is disabled at 20% or more
- Offers a small improvement loan that is combine with the first lien for home improvements towards energy efficient upgrades (windows, heater, a/c and hot water heater)
A USDA home loan is different from a traditional mortgage offered in the in several ways.
- USDA loans require no down payment, you may finance up to 100% of the property value
- You must meet the income restrictions for the County you are interested in Each county has a maximum Income Requirement and they are higher that you think
- To be eligible, you must be purchasing a property in a rural area as defined by the USDA, each county has selected areas
- The home or property that you are looking to purchase must be owner-occupied, investment properties are not eligible for USDA loans
- No pre-pay penalty, can pay loan off at any time
- The best thing about the USDA loan is, you have the opportunity to finance the closing cost. Image a no money down home loan program and then able to finance the cost of the loan (the GNND program also offers this option)* the home must appraise higher than the purchase amount to allow the available equity to finance the closing cost
- Like other programs have loan limits, this program does not
Lets get started on one of these great 100% home loans. I welcome the opportunity to speak with you about the VA loan if you are a active or retired military hero. Also, looking to purchase a home in a designated area of your county in California, lets discuss what areas are open for you to take advantage of the USDA-RD loan program.
I look forward in hearing from you, please contact me at 909-503-5600 or complete the contact form on my blog HERE!