In an economy where home ownership is again on the rise, many first time buyers are searching for more frugal ways to break into the housing market. Members of the armed forces and farmers hoping to buy will find that they have a number of lucrative options that often require zero down payment.
These mortgages are given exclusively to veterans and only require upfront payment of the funding fee, which is between 2.15 and 3.3 percent. Private financial institutions initiate VA loans and the federal government guarantees them in the instance of default. One of the best things about this mortgage is that the funding fee can be included in the overall loan and, hence, broken up into monthly payments. Such option works extremely well for first time buyers who cannot pay three percent of the home’s value upfront.
Navy Federal Credit Union Mortgage
The Navy Federal Credit Union, which is the largest financial institution to service active armed forces members, currently offers its patrons home loans that are 100% down payment free. These mortgages are, however, restricted to primary homes and borrowers must pay 1.75 percent in funding fees. Active military service men and women certainly quality for home loans through the Navy Federal Credit Union. Civilian employees of the armed forces along with family members of service men and women may also qualify if their circumstances meet the credit union’s stringent rules.
Here is a loan that is actually open to veterans as well as the general public. The United States Department of Agriculture (USDA) runs a special lending program from time to time that grants borrowers a mortgage with no money down. Individuals must select property that can be used for farming to qualify and they should be first time buyers. While the USDA sometimes relaxes its standard of lending to first time buyers only, the entity does not grant mortgages to individuals who are not planning to use the property for agriculture. This loan is, thus, ideal for farmers as the funding fee is only two percent and may be included in the overall amount owed.
In your search for alternative ways to buy and sell homes, check out Caymus Realty Solutions. Our process of purchasing is simple as we begin with an appraisal and end with paying you cash for your home. We are open to any and all homes, regardless of their condition, and promise to pay fair market value for your residence. Learn more about us at our website.