Are you considering buying a home this year? Most would have you believe that you need at least a 3.5% down payment to get a mortgage. But there are actually a few ways you can get a home with a zero down mortgage.
Here’s what you’ll need to get the keys: a good credit score — a 640 or better with a clean payment history; consistent income, with a solid work history for at least the past two years; and an ability to afford a mortgage payment.
Conventional Loans
What it is: In order to buy a house with a conventional loan, you’ll need at least a 5% down payment. The 5% down payment can come in the form of a gift, and you no longer need to have a minimum contribution to the down payment. The entire down payment can be a gift as long as you’re buying a single-family home. And single-pay mortgage insurance is a little-known benefit that simply allows you to pay a portion of the future years’ PMI payments upfront in one lump sum at close of escrow. Typically, you’re required to have private mortgage insurance (PMI) when you have less than 20% equity on a refinance or less than a 20% down payment when buying a home. Continue reading “Can You Still Buy A Home With A Zero Down Mortgage?”