How To Buy A First Home With No Down Payment -

"If we go with a standard FHA loan," Sarah noted, "you only need 3.5%. But, we can pair that with a local DPA grant ." She showed them a state program that provided a "silent second" loan to cover that 3.5%, which would be forgiven if they stayed in the house for five years.

Alex and Maya spent the next month cleaning up their credit scores to snag the best interest rates. They opted for a on a fixer-upper craftsman. Because they didn't have to sink $40,000 into a down payment, they kept their savings for the inevitable "first home" surprises—like the water heater that gave up the ghost three days after closing. how to buy a first home with no down payment

Alex and Maya stood on the sidewalk of Maple Street, staring at a "For Sale" sign that felt more like a "Keep Out" sign. Like most first-time buyers, they had a steady income but a savings account that was barely recovering from their wedding. The dream of a backyard for their dog, Barnaby, felt anchored by a weight they didn’t have: a 20% down payment. "If we go with a standard FHA loan,"

Determined, they met with a loan officer named Sarah, who didn’t laugh when they admitted their "house fund" was mostly loose change. Instead, she opened a folder labeled . They opted for a on a fixer-upper craftsman

"The 20% rule is a myth for first-timers," Sarah explained. She walked them through three distinct paths:

Since they were looking at a quiet suburb on the edge of town, Sarah checked a map. "This area qualifies as 'rural' by the USDA," she said. This government-backed loan required $0 down , provided the home was in an eligible area and their income fell within certain limits.

She asked if either had served. If Alex’s brief stint in the Reserves had met the requirements, they could have used the VA loan—the gold standard of no-money-down buying with no monthly mortgage insurance.