FAQ #10 ........ Are There Any No Money Down Programs Available For Me

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

My Final Frequently Asked Questions blog inAnna 'Banana' Kruchten  ActiveRain contest in which we are to respond to the 10 most frequently asked questions that we are asked most often, is a question that I am asked frequently by both First Time Buyers and Existing Homeowners. 

"FAQ #10 ......... Are There Any No Money Down Programs Available For Me?"

 This is a question that I expect to get from First Time Homebuyers, but was a little surprised at first when I started to be asked this from Existing Homeowner.  But I should not have been surprised that Existing Homeowner were asking this question more and more, because property values have been decreasing, and many Existing Homeowner want to take advantage of the lower prices to purchase a bigger home.  Because of property values decreasing many of the Existing Homeowners find themselves basically breaking even on the sale of their house, and no money to use towards the new purchase.

Fortunately their are still a couple of Mortgage Programs available to both First Time Buyers and Existing Homeowners here in Connecticut, that do not require a downpayment, and one that has an option for them to borrow the Downpayment and Closing Costs.  These programs do have requirements that Borrowers have to meet, so they are limited as who can qualify.  I will not go into detail here on each program, but I will provide a links to blogs I have written in the past on each one.

VA Mortgages are a true 100% financing mortgage.  VA does not require any downpayment, and no PMI.  VA Mortgages are available to both First Time Buyers and Existing Homeowners, but are limited to Military Veterans that are able to obtain a Certificate of Eligibility.

USDA/Rural Mortgages are also a true 100% financing mortgage, that is available to both First Time Buyers and Existing Homeowners, but does require a very small PMI payment.  USDA/Rural Mortgages are also limited to certain geographic areas within each State, so borrowers need to check their USDA State Map to see which towns this mortgage program is available in.

Connecticut Housing Finance Authority (CHFA) is a subsidize mortgage program that is available to all First Time Buyers that are within CHFA Income Limits.  But CHFA Mortgages are also available to Existing Homeowners who are purchasing within a CHFA designated Targeted Area.  CHFA is not a true 100% financing mortgage program, because it does require a 3.5% downpayment, but it does allow eligible borrowers to borrow the Downpayment and Closing Cost on a second loan at the same subsidized interest rate.

As I stated above more details on each of these programs are available by clicking on the links that I have provided to each one. 

These are the programs that are available here in Connecticut, but there maybe other Mortgage Programs that are available in other States. Borrowers should check with a local Loan Originator to find out what 100% finance Mortgage Programs are available to them.


Previous FAQ's Blogs.

"What Do I Need To Do To Get Pre-Qualified For A Mortgage?"

"What Do You Mean I Need Money For Closing Costs?"

"Why Do I have To Pay For A Full Year Of Homeowners Insurance Up Font When I Am Paying For It Every Month In My Mortgage Payment?"

"How Can I improve My Credit Scores?"

"PMI/MI Why Do I Have To Pay It?"

"At What Point Can I Get Rid Of The PMI Or MI?"

"I Don't Want To Pay Any Points?"

"Do I Have To Escrow My Taxes & Homeowners Insurance?"

"Why Is The APR Higher Than The Interest Rate?"



  Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net


Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Charles Stallions 06/03/2012 06:36 AM
Mortgage / Finance
1st Time Buyers
Real Estate Rookie
ActiveRain Contests
no money down mortgage programs

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Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Great post and this is a question I'm sure in these market times comes up more and more. Thanks for the information.

May 25, 2012 07:11 AM #1
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

George, I think I've missed a few of your FAQ Posts...I'll go back and check them out.  As for this one...great info as usual.  I've had several clients use USDA loan programs...I've also had a few not qualify because of what I think are relatively low income requirements...still it's a great program even with the funding fee and small monthly PMI.

May 25, 2012 08:07 AM #2
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

George, i so love the VA loan program for our men & women who have served and are still serving in it...it does make it affordable to buy a home with it.

May 25, 2012 09:40 AM #3
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

This FAQ thing is really working out for you...you are getting a ton of features.  Congrats.  I think you found a new formula on here. way to go.  First time home buyers are in great shape if they call the expert - George Souto.

May 25, 2012 10:01 AM #4
Pete Xavier with AffordablePlan.org
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

My sister Cheryl has her own no money down program.

First she finds a house and than finds a guy with money, done it on four homes.

May 25, 2012 10:21 AM #5
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Pete is pretty funny!  However,  some guys just don't have the money...   so, this is a good post on what programs may be available.  NH has a program similar to CHFA, but there are restrictions and income limits.  There certainly are some options for buyers and it is good to check with a professional like yourself.

May 25, 2012 11:37 AM #6
1 ~Judi & Don Barrett & Chassy Eastep - Integrity
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

That's very similar to the list that I run through with buyers when they ask except for the Maryland program... but we do have an Oklahoma Advantage program.. 

May 25, 2012 12:34 PM #7
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

George, I like that there are programs for no money down, and I dis-like the PMI - removal process, but thems  the breaks for these deals.

May 25, 2012 12:50 PM #8
Kevin O'Rourke - Keller Williams Miami Beach Realtor
Keller Williams Miami Beach Realty - Miami Beach, FL
CDPE Miami Short Sale Agent 305-520-9436

Great info George. No doubt this is music to the ears of First Time Homebuyers especially.  Even though prices have drropped in recent years, it can still be a challenge to come up with the down payment.

May 25, 2012 01:34 PM #9
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

George, that's interesting. I thought all 100% mortgage programs disappeared but with this, I can get a good home for deserved buyers..

May 25, 2012 02:59 PM #10
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I use VA and USDA loan products all the time. Even with no money down, the default rates with these prodcuts are some of the lowest of all loan products.

Great job with the 10 part series!

May 25, 2012 08:55 PM #11
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

good in the business information post especially for the military buyers....VA is a good program

May 26, 2012 12:00 AM #12
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George Souto

Your Connecticut Mortgage Expert
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