FHA Brings Back Zero Down Financing for Self-Employed!

Real Estate Agent with Keller Williams Realty

Effective today, April 1, 2012, and good for a limited time only, FHA has announced a new pilot Zero Down Payment Financing program available to self-employed individuals with credit mid-scores of at least 450.

Based on the huge success of the former NINA (No Income, No Assets) loans and other ‘Alt A’ “No Documentation” loan programs which led the housing boom of 2005-2007, the loans will be available for homes which appraise for at least 80% of list price, regardless of condition.

HUD spokesman Noe Jose said, “The program is a trial effort to find a replacement for the hugely successful Tax Credits for Home Buyers which expired in 2010.  Those Tax Credits are widely acknowledged as boosting home sales during a period of economic uncertainty.”  Of course, increased home sales lead to increased employment in the construction sector, one of the largest job creation industries.

On another note, of course today is April 1, widely known as April Fools Day.  See http://en.wikipedia.org/wiki/April_Fools'_Day for a thorough discussion of the history of this great day of mischief.  Our all time favorite is the BBC’s Great Spaghetti Harvest

Of course, there will be no “Zero-Down” financing, or any other loans for that matter, for people with credit scores under 600.  But for those who are eligible and can qualify for a loan, There are plenty of bargains, interest rates are still near record lows, and even some zero down programs that are available, including USDA Financing for properties outside the city limits, Bond Program loans for First-time Buyers, VA Loans for Active Duty Military or Veterans.

San Antonio is booming.  See our recent video:  San Antonio Rocks!.  If you are thinking about Buying or Selling, or know someone who is, please call us.  Waiting could be expensive!

Best regards (and Happy April Fools’ Day),

Doc and Ellen Stephens, REALTORS®

Keller Williams Realty

10999 IH-10 West, Suite 175

San Antonio, TX  78230

            (210) 764-9403      


Comments (42)

Raymond Denton
Homesmart / Evergreen Realty - Laguna Beach, CA
Laguna Beach Realtor

I started questioning it when I saw the "regardless of condition" - you got me.

Apr 01, 2012 02:54 AM
Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Doc, I saw michief in your smile--thanks for the humor.  Unfortunately, the real joke is on us all when politicians lay blame at the feet of bankers and mortgage professionals for their misdeeds, then follow up by punishing honest, hard-working citizens with dreams of home ownership.  We get the dirty job of telling them they don't qualify.  Credit scores are no more a true reflection of a man than is his social security number.  Those scores tell nothing of job lay-offs, medical problems, nor of one's determination.

Thank goodness for a day of levity, and of those who can laugh in difficult times--those are the things that will see us through to brighter days.

Thanks again.

Apr 01, 2012 02:55 AM
Edward Gilmartin
CRE - Boston, MA

They also will take a Matricular Consular card issued in mexico as a form of id...stated income is back too.

Apr 01, 2012 03:16 AM
MaryKay Shumway
The Kellstrom Ray Agency, Inc. (Est. 1948) - Sister Bay, WI
Door County Wisconsin's Real Estate Expert


Apr 01, 2012 04:07 AM
Bryan Robertson
Los Altos, CA

I'm with Bryant.  Very funny and the headline probably will get attention from a few buyers.

Apr 01, 2012 04:12 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I had a moment when I thought maybe FHA was going to do something to help the housing industry, but the 450 FICO was the step too far. :)

Apr 01, 2012 05:31 AM
John F Muscarella
Broker/Owner, Venice, FL, Florida's Suncoast

Yes I think I'll try this on several buyers who have been on the fence lately.

Apr 01, 2012 06:04 AM
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

You were the first one to get me. . . it's almost 9PM and I am heading to bed thinking "ha!"  No tricksters.  Congrats!

Apr 01, 2012 10:50 AM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ

HAHAHAHA!  You didn't fool me on this one.....too funny!

Apr 01, 2012 11:11 AM
Tanja Cisliek
Future Home Realty - Seminole, FL

Witty post, got to give you credit for a fun post that made me smile!

Apr 01, 2012 11:24 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Too funny -- from the very first words I said to myself APRIL FOOLS!

Apr 01, 2012 12:53 PM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTORĀ®

BAHhahahahahahaHAHA! Great April Fool's joke. I was going... You have GOT to be kidding me. I forgot that today was April Fool's day!! :)

Apr 01, 2012 01:25 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Ellen and Doc - I was wondering how zero down for self employed made sense.  Then, I got to credit scores and knew it had to be April Fools.

Apr 01, 2012 02:10 PM
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Ellen and Doc - When I saw the score of 450...I thought, here we go again...haven't we learned anything from the last mess? Happy April fools day!!

Apr 01, 2012 03:37 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good try, but unfortunately, too good to be true.  Now the new government no interest loan is another story!

Apr 01, 2012 07:59 PM
Frank Iglesias
Working With Houses, LLC - Atlanta Real Estate Investments - Lawrenceville, GA
Atlanta, GA Real Estate Investor

That was funny!  Nice share.

Apr 01, 2012 08:50 PM
Brian Schulte
Allison James Estates & Homes - Sierra Vista, AZ
SFR, Sierra Vista, AZ

Terrific Post!

At 1st I grinned like a Cheshire Cat.

Then I frowned.

Then I laughed.

Mr. BS Realty

Apr 02, 2012 12:19 AM
Stephanie Stringer
First Choice Loan Services NMLS#210764 - San Antonio, TX
Mortgage Loan Originator

Ellen and Doc... Pretty good trick!!!  I totally agree with you on SA.  I love living here and it's a wondeful place to raise a family.

Apr 02, 2012 12:26 AM
Kevin A. Guttman-Author, ReverseMortgageSpecialist
NMLS #384936 - Colorado Springs, CO

Great April fool's joke!

I thought, why haven't I heard about this?

Almost got me, good one!

Apr 02, 2012 07:14 AM
David A. Weaver
Peoples Bank & Trust Co. - Scottsdale, AZ
24 years helping folks finance their dreams.

Wait, I just got the memo from our head underwriter that this is for real..........huh, yeah OK, honey.  I'll stop dreaming and drooling down my chin.  Have a great April and rest of the year.  Good joke, life's too short to take totally serious.

Apr 02, 2012 11:59 AM