Are 0% Down Mortgage Options Available?

There are multiple mortgage programs that offer homebuyers the opportunity to purchase a home with 0% down. Not only do USDA programs offer this but so do VA, CalHFA, & Chenoa programs. A brief explanation of these programs follows:

USDA

The USDA Guaranteed Loan program is a Federal program offered through the United States Department of Agriculture. Most people wouldn't think of the Cochaella Valley as rural but there are several areas in the valley that still fall within the guidelines. Thousand Palms, Mecca, Desert Hot Springs and some areas of Thermal are considered to be rural for this program. Benefits of this program include low monthly mortgage insurance, low mortgage rates, low closing costs and of course zero down payments. As with any loan program, there are household income requirements.

VA 

The Veterans Benefits Administrations (VA) home loans help servicemembers, veterans, and eligible surviving spouse become homeowners. The eligibility requirements for a VA home loan are fairly simple. Mainly if you have served 90 consecutive days of active service during wartime or have served 181 days of active service during peacetime. Having more than 6 years of service in the National Guard or Reserves also qualifies.

With a VA home loan you can buy a home, condo (within a VA-approved community,) simultaneously purchase and improve a home, or even build a home. Manufactured homes also qualify. If you are already in a VA loan, you can refinance an existing VA loan if the interest rate would be lower. 

CalHFA

The loan program is offered through the California Housing Finance Agency  and provides first and junior loan options for moderate income families. CalHFA assistance includes low to zero interest rate down payment assistance loans. For example, on a $400,000 home purchase, you could receive $16,000 towards the downpayment with a low interest subordinate loan. You must occupy the property as your primary home and be a first-time homebuyer. CalHFA is available to all school teachers, administrative and staff members.  

Chenoa

The Chenoa fund provides financial tools to overcome the challenge of minimum investment required for a mortgage. Several options are available and include down payment assistance in the form of second mortgages and works with both FHA and Conventional loans. There are no first-time borrower requirements. An example of the FHA Chenoa Fund Edge program allows the borrower to receive a 30-year term with 0% interest rate, no payment, second mortgage. The loan is forgiven as soon as the borrower makes 36 consecutive on-time payments on the FHA first mortgage. 

Increasing home prices are becoming an affordability issue for many residents in the Coachella Valley but it doesn't have to change your dreams of homeownership. Lets talk and find a program that works for you! 

Rules apply with these mortgage programs. The borrower must meet minimum credit qualifications and income guidelines for each program. Contact me to learn more about specific requirements and benefits for each program. Want more information? Apply online or call or text  me at 760-574-8486.