A nice Christmas present, buy a home with a $0 (zero) down payment. Here are homes for sale in the Phoenix metro available for $0 Down by using a USDA loan. Others are available through other methods.
There are three primary methods for a buyer to consider in purchasing a home with, in essence, $0 down payment:
1. USDA Loan (US Department of Agriculture)
2. Free grant programs (down payment and/or closing costs assistance)
3. VA Loan (Veterans Administration)
$0 Down Payment with USDA rural farm loan was available for a home like Hope Ranch, 38822 N 27th Avenue, Phoenix, AZ 85086 which is in an area of Maricopa County designated for USDA loans
1. USDA Loan
Obtain a home loan with 100% financing through the USDA or
U.S. Department of Agriculture's Rural Development Program. USDA loans are for homes in designated rural areas and often have a easier level of qualifying benchmarks to encourage buyers to buy homes in these areas. The rural areas, surprisingly can me in a major city's metro areas. For example homes for sale in Phoenix metro suburb cities and towns like Buckeye, Phoenix county areas, Anthem and New River as well as others qualify for USDA loans. These homes may be ranches or they may be suburban homes in developed subdivisions.
Areas that are designated as eligible can be found at USDA's site under "Property Eligibility.
2. Free Grant or Down Payment Assistance Program
Many free grant or home buyer assistance programs exist throughout the country through economic stimulus support that is administered locally. For example, here in Phoenix, Arizona there is the Home in Five program that offers buyers up to 5% grant for a home purchased in Maricopa County. The home buyer must take an educational class and register through one of the appointed lenders for an FHA, VA or USDA loan to qualify. A VA loan may be eligible for up to 6% assistance.
For example, an FHA loan requires 3.5% down. However, the 5% grant can be applied to down payment and/or closing costs allowing for a $0 down payment loan and home purchase.
Around the United States these programs are handled individually with their own sets of rules and benefits. Realty Trac reported that are 2,290 of these grant/assistance programs that exist in the United States. A program may administered by a variety of government cities, counties, states or agencies.
3. VA Loan
VA Loans offer a $0 (zero) down payment for those that have served in the military and qualify. Qualifying can be easier than those that are qualifying for conventional or FHA loans. If you are a veteran, take advantage of this opportunity and combine it with the free grant program if applicable in your state or county.
Ask your local lender for more information about your situation and obtain a quote. For more information about buying a home in Arizona visit me.