100% financing was a way for many homeowners to purchase their homes
in the 1990’s and early 2000’s.Today, other than the 100% USDA Rural Development Guaranteed Housing Loan and Veterans Administration Loan, 100% conventional financing is really not available to the typical borrower.
The benefits of having a USDA Rural Development Guarantee Housing Loan are:
No down payment is required Flexible credit score guidelines
No maximum price limit
Closing costs can be gifted or given to you in the form of a seller concession
Repairs and/or improvements can be structured into the loan
Great 30 year fixed rates
You do not have to be a first time home buyer
There are a few provisions to a USDA Rural Development Guarantee Housing Loan:
You must occupy property. Your home must not be in disrepair – average condition. Borrowers must have dependable income and the ability to pay your bills on time. Borrowers must buy a home in a rural development eligible area
You and family must meet certain income guidelines found easily on the USDA site. To get complete information on USDA rural development loans please visit:www.rurdev.usda.gov/rhs/sfh/gsfh.../individuals.htm
The benefits of having a Veteran's Administration Loan are:
No down payment is required. Competitive 30 year fixed rates. No need for private mortgage insurance.
Several property types can be purchased like manufactured housing, condos, and town-homes.
There are a few provisions with a Veteran's Administration Loan:
You must meet minimal credit and income requirements. Borrower can’t purchase new construction homes.
Borrower must have a certificate of eligibility. To get complete information on VA loans – please visit:http://www.benefits.va.gov/homeloans/docs/vap_26-4_online_version.pdf