Here’s the inside scoop on four loan options for cash-strapped homebuyers:
1. Credit Union Loans
If you have excellent credit and plenty of income, you might qualify for a no-money-down home loan from credit union. Navy Federal, for example, offers the HomeBuyers Choice to all its 4 million-plus members.
The NASA Federal Credit Union’s 100% financing is limited to its home base in the Maryland, Pennsylvania, Virginia or the District of Columbia.
Other credit unions may also allow members to pledge their savings (or in the case of second home buyers, their primary home equity) to guarantee a low- or no-down payment mortgage.
2. VA Loans
If you’re currently in military service, you’re a veteran or you’re the surviving spouse of a service member, you can use VA’s loan guarantee program to buy a home costing up to $417,500 in many areas (or up to more than $1 million in high-cost areas).
You do have to have good credit, show you can afford the loan and meet rules about length of service.
If you want to buy a condo or coop with a VA loan, the project has to be approved. Reservists can use the program, too.
3. USDA Loans
To use the USDA’s Rural Development Guaranteed Loan Program you have to be a low- or moderate income consumer buying in a rural area. Not only can you buy without a down payment, you can also roll the cost of your loan guarantee fee into the mortgage to cut down the cash you have to bring to the closing table.
4. State And Local Loan Programs
There are state housing authority and local homebuying programs that sometimes offer low- and no-money down loans for buyers who meet income guidelines. You can contact me to get more information about those programs.
Contact me if you'd like more information about any of these programs.
source: HomeActions
