There are several different loan programs where you don't need a downpayment at all or only a minimum downpayment.
One is the VA Loan. A VA Loan is a loan that most mortgage lenders can help you get. You do not go directly to the VA to get the loan approval; you will meet with a local lender and they will do all of the paperwork for you. Many of our clients who use a VA loan only need their earnest money check (typically $1000), their appraisal fee ($450, can be put on credit card), and home inspection fee ($300-$400) out of pocket and the loan can be structured so the client sometimes even gets that money back at settlement! You'll want to make sure your Realtor understands VA financing and asks for the correct amount of seller help so you don't end up having to bring more money that you need to. You need to be eligible for this benefit and there is a table here that you can view to see if you may be able to obtain a 100% financing VA Loan:
People Who Are Eligible For a VA Loan
Another is the USDA Loan. This is a government-insured program and you do need to qualify for this one as well. There are income limits based on family size, but in Maryland they are pretty high; as much as $126,000 for a family of 5+!
This is considered a rural development loan so the areas where you can purchase a home are restricted but some are not as far away as you'd think. You can't get this financing in the Crofton/Odenton/Ft. Meade area obviously, but if you go a little farther out, you CAN get USDA financing in Churchton, Deale, Galesville, Harwood, Lothian, and West River.
In Howard County when you get outside of the Columbia/Ellicott City area, you can use USDA financing in Dayton, Glenwood, Lisbon, Marriottsville, Mt. Airy, and West Friendship.
If you're looking in Calvert County in North Beach, Dunkirk, Huntingtown, Long Beach, Barslow, Prince Frederick, St. Leonard, or Lusby - they ALL qualify for USDA loans!
In St. Mary's, California, Lexington Park and Patuxent River do not qualify, but other towns like Abel, Callawy, Compton, Drayden, Morganza, Park Hall, Ridge, Scotland, and St. Inigoes do.
Many towns on Maryland's Eastern Shore are eligible as is most of Carroll County outside Westminster.
If you have questions about eligible areas, let us know!
The CDA loan can be an almost no money down loan depending upon the property and area. CDA does have income limits and is for first-time home buyers. They have a $5000 zero interest program and you can use that towards your downpayment and if the seller pays your closing, you could have little or no money required other than your $1000 earnest money. If you buy a home/condo for $145,000, you would only need $75 towards your downpayment with the $5000 loan.
There are other bank-specific or "portfolio" style loans that you may qualify for depending upon your situation. For example, Suntrust features a Doctor loan to meet the needs of Licensed Residents/Interns/Fellows in MD and DO programs, and several others and allows for a variety of fixed or adjustable-rate mortgages with up to 100% financing and no monthly mortgage insurance payments. Several credit unions also offer 100% financing for conventional mortgages but you will need to be able to qualify by being a member of the credit union and your credit score will need to be high enough. Many of these types of loans will be credit score driven so the higher the better!
If you're planning on buying a home in the future, even a year or more from now, it's a good idea to sit down with your Realtor and brainstorm loan types, chat with lenders, and start planning so you can make your dreams come true and move into your new home - you may be able to do it sooner than you think!
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