Zero Down Loan

A conventional mortgage, and not a government loan, this program allows 100% financing of the purchase price. An additional 3% of the fees can also be added into the mortgage amount. You do not need perfect credit to qualify. This loan is offered as a 3/1, 5/1, 7/1, and 10/1 ARM. Private Mortgage Insurance is may be required.

FHA (Federal Housing Administration Loan)

The Federal Housing Administration insures this loan. It allows a buyer to purchase a home with as little as 3% down and is easy to qualify for. A family member can pay 100% of the down payment and closing costs as a gift. 30- and 15-year fixed rates, as well as a one-year ARM are available. There are maximum loan amounts depending upon the area in which the home is located. FHA approves these amounts for each county based on average home prices.

Community Homebuyer Program

For first-time homebuyers, this program offers a 3% down payment. Buyers are required to participate in an approved homebuyer education program. There are income limitations based on HUD's median income in the area in which you are buying.

VA (Veterans Administration Loan)

This loan is available to eligible Veterans only. The Veterans Administration Services insures this loan and allows individuals who have served in the armed forces to obtain a loan for 0% down payment, making it relatively easy to qualify. Proof of DD214 and Certificate of Eligibility are both needed. Although this is a zero-down program, borrowers are responsible for closing costs and prepaid items. There is also a one-time VA funding fee, which can be added into the mortgage amount. The seller can pay for these fees; however, the total fees paid can not exceed 4% of the purchase price and this must be stated in the purchase agreement. For example, a purchase price of $80,000 would allow $3,200.00 to be paid by the seller.