Apply Now
Schedule a time with a Loan Officer

Mortgage Broker Cape Coral FL | Home Loans | Island Coast Mortgage

If you are ready to take advantage of our Lowest Rate Guarantee, free closing costs and fast approvals, give us a call today at 239-214-7011.

Call Us Today! 239-214-7011

Can You Buy a Home With Zero Down Payment?

Can You Buy a Home With Zero Down Payment?

by

Buy a Home in Cape Coral Florida

For a lot of prospective homebuyers, one of the biggest barriers to homeownership is making a down payment. You might be able to easily afford to keep up with monthly payments on a home, but simply not have a lot set aside for the upfront costs of buying a home.

It is a myth that you need to be able to put down 20% to purchase a home. Whether you are a first time homebuyer or a returning homebuyer, there are opportunities to make lower down payments. And in some cases, it might be possible for you to move into a home with no down payment.

Let’s take a look at a couple of mortgage programs that let you buy a home with zero down payment.

USDA Home Loans in Florida

The USDA loan program is an income-based program guaranteed by the US Department of Agriculture.

If you are buying a home in a “rural” part of Florida and your income does not exceed the upper limits, you might qualify for a zero down mortgage.

The reason we are putting “rural” in quote marks is because the USDA’s concept of rural is quite a bit broader than many homebuyers would expect.

So, you might be surprised to discover that you are shopping in an eligible area.

Here is what to know about USDA loans:

  • You may be eligible if your income is not more than 115% of the median income for your area.
  • For automatic underwriting, you need a minimum credit score of 640.
  • Your qualifications are the basis for the maximum loan limit, rather than there being a universal cap.
  • A funding fee and annual insurance are required for a USDA loan. But both are low compared to insurance and fees for FHA loans.
  • A USDA mortgage lets you buy a home with zero down.
  • With this type of loan, you can look forward to competitive mortgage rates.

Island Coast Mortgage can go over the full details with you concerning eligibility and benefits for USDA home loans in FL. We can also clarify for you whether the area where you are shopping for a home qualifies as rural.

VA Mortgages in Florida

Another program that lets qualifying homebuyers move into new homes without a down payment is the VA mortgage program insured by the US Department of Veterans Affairs.

Here are the basic facts you need to know about VA loans:

  • To qualify, you need to meet a minimum service requirement. You may be active duty or retired military.
  • Eligible surviving spouses may also qualify for VA mortgages.
  • Any military branch is eligible. National Guard and Reserve may also be eligible.
  • A VA mortgage lets you buy a home with zero down.
  • There is no mortgage insurance requirement.
  • There is a funding fee. If you are a qualifying disabled vet, this fee can be waived.
  • Closing costs are capped.
  • Interest rates are affordable.

VA loans are some of the most competitive around, and they make it easy for eligible veterans to move into new homes right away.

Apply Now to Move Into a Home in FL With Zero Down Payment

Now you know about mortgage programs that give you the chance to move into a home without a down payment. That means no more waiting to buy a home—you may be ready to move into your dream home now.

We can walk you through the steps to apply for a USDA or VA mortgage. What if you do not qualify? We can help you apply for other loan programs with low down payment requirements, and also connect you with down payment assistance programs.

Whatever your situation, we are here to remove barriers from your way, and get you into your new home. To apply now, please give Island Coast Mortgage a call at 239-214-7011.