Real Estate Broker/Owner with Turn Key Real Estate




there's always a catch.  So before I scetch 5 different programs for zero down,let me put you on notice:    I can also show you a list of creative techniques that can help buy your home with  very low down.  And I can show you ways to raise that cash.  Now, 5 programs for you to be a homeowner with zero down.  (Be patient; each item is a bit long and tedious; but these requirements are complicated and I want you to be informed at the start.

*  VA Loans with zero down.  Of course everybody knows that veterans have  the privelege of 100% financing. Are you also familiar with other features of VA lending?

      a.  You can skip the MIP (Mortgage Insurance Premium.  {Does not insure you, it insures the lender.  But HOMESANDWEALTHINTACOMAmost non-VA buyers have to pay for it and it can be quite expensive.})  Vets can skip it and save serious money .  Yea!

      b.  If the seller agrees, he can pay your closing costs for you.  (Double zero down.)  Yea!

      c.  If the seller agrees, he can also pay off some of your credit accounts, qualifying you for the loan.  Yea! Yea!

      d.  VA loans now require extra funding--and other special--fees.  While you can even borrow the money to pay these fees, they must be paid back at some time.  Eventually you'll pay cost for that zero down privelege. 


My recommendation: have a serious talk with your mortgage lender.  Bring pencil, paper,and calculator.   You may wish to continue renting awhile and save up for a minimum down payment.  Then again, zero down let's you become a homeowner immediately. 


*  USDA Loans with zero down.  YES, the Agriculture Dept. is guaranteeing home loans.  And you don't have to be a farmer to qualify.  It's the government's  "Rural Development Program".  Your home must be in a rural area, but we are frequently surprised at the built-up areas that they define as "rural".  Your Real Estate Broker should be able to bring up a map of acceptable areas.  Things to know:

     a.  You must qualify by family income and family size.

     b.  Not all banks are set up for USDA Loans.

     c.  USDA financing can be used for new construction.  (But with so many  existing homes available  today at bargain prices, why would you want to undergo the mayhem of new construction?)


For elgible buyers buying an elgible home, this is a very nice program.  Get it while it lasts!


*  DOWN PAYMENT ASSISTANCE:  a Federal Program to help renters become homeowners; administered by local government (City of Tacoma, City of Lakewood, Pierce County etc.) operating under federal guidelines.  Tacoma Pierce Fircrest Homes w zero down.They loan you the cash for the down payment and some of your closing costs.  AND you repay on YOUR schedule.  You could pay it off all at once, or over 20 years.  Or you could sit on it for 20years and pay it off then.


The good news:  ZERO INTEREST!  So if you want to delay payment, it costs you nothing.  BUT:

*  Available only for certain areas.  (Not North Tacoma.)

*  You must qualify with a "low income".  If you're making big bucks, you may not be elgible.  but, depending on family size,  "low income" can include some fairly big numbers. 

*  You must live in the house; whenever  you sell or move out, the 2nd mortgage comes due.

*  There may be "recapture";  if you eventually sell your property and make a gain, the feds may require you to share that gain with them.

*  This is a federal government program; be prepared for inane bureacratic red tape.  But if you can be patient, you will eventually know the pleasure of being a homeowner. 


RENT-TO-OWN?  (a/k/a Lease Option, etc.).  A sound idea.  You move into the house, confidant that at some pointin the future you can qualify for a loan.  Let's you buy in the future at today's prices and meanwhile you are living in a home that you KNOW will become yours.  Some sellers will even let your rent payment build up credit toward your down payment.  Can be good.  But usually it's not.  Why?

*  Most rent-to-own buyers are extremely casual about their choice of home.  Any home will do; it's just a rental.  Right?  Later, they realize that the house has defects, they don't like the neighbors, and the inlaws don't want them living in that part of town.  So they move out after having paid top rent rates for some years.

*  The lease-option papers need to be carefully structured;all the negotiation is done at the start.  When it comes time to convert to ownership, buyers are surprised to discover everything was set in stone years ago.


*  Why is the seller being so nice to you?  AT a time when sellers can have the sale financed  (sometimes with zero down), get all their money right now and never a worry about the next payment.  And not even a cash down payment to protect the seller from what the buyer may be doing to his house!  It could be OK but you need to know what is the seller's game here. 


In marketing hard-to-sell properties, houses that are ugly or badly located or seriously overpriced, one of the first suggestions is always:  "give it easy terms".  Most rent-to-own properties are unattractive, over priced, or substandard.  Some are all three. 


I am not condemning lease-option arrangements.  But buyers need to be very clear on why they seek this special arrangement and what it costs them.  I myself have bought property with this arrangement; it can solve certain problems and give you the advantage of owning now rather than later.  But keep your cool and demand a clear statement of all pertinant facts. 


Usually, the best approach is to pick a good Realtor, employ him as your Buyer's Agent.  That enables you  to compare your lease-purchase with regular terms.


FANNIE MAE My Community Loans.  A new home loan program to encourage homeownership.  Like all federal programs it is filled with special treats for special people etc.  But it advertises easier down payments  (zero down?) and easier credit requirement.  Even available for owner-occupied multi plexes. 


WANT TO BUY A HOME WITH ZERO DOWN OR VERY LOW DOWN? TACOMA PIERCE COUNTY FORT LEWIS MCCHORD AFB FIRCREST?  Just leave me a "comment" here with some contact info; tell me a little of your situation and what you need to become a homeowner.  If you are serious in your intent, I can almost always make you an owner in 1-2 years; usually sooner.  And if you find that zero down is not desirable or not possible for you,  I may be able to guide you to unknown sources for down payment cash. 


If you sincerely want to own a home of your own, it's probably time to stop dreaming and start acting.  Just leave me a comment or call me directly.  I'll be glad to get you started. 




Turn Key Real Estate

1310 -C-  North I St.

Tacoma, 98403

1 888 301 4221


Comments (1)

Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Steve - A great overview.  I think that for those who don't qualify for those programs you mentioned, the FHA 3.5% down is a pretty good deal also.  The rent/lease to own programs are really hard to understand in today's loan market.  Why pay more, when you can get loan for 4.5-5.25% interest rate?

Aug 30, 2011 11:43 AM