FAQ #10 ........ Are There Any No Money Down Programs Available For Me

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut NMLS #65149

My Final Frequently Asked Questions blog inAnna 'Banana' Kruchten  ActiveRain contest in which we are to respond to the 10 most frequently asked questions that we are asked most often, is a question that I am asked frequently by both First Time Buyers and Existing Homeowners. 

"FAQ #10 ......... Are There Any No Money Down Programs Available For Me?"

 This is a question that I expect to get from First Time Homebuyers, but was a little surprised at first when I started to be asked this from Existing Homeowner.  But I should not have been surprised that Existing Homeowner were asking this question more and more, because property values have been decreasing, and many Existing Homeowner want to take advantage of the lower prices to purchase a bigger home.  Because of property values decreasing many of the Existing Homeowners find themselves basically breaking even on the sale of their house, and no money to use towards the new purchase.

Fortunately their are still a couple of Mortgage Programs available to both First Time Buyers and Existing Homeowners here in Connecticut, that do not require a downpayment, and one that has an option for them to borrow the Downpayment and Closing Costs.  These programs do have requirements that Borrowers have to meet, so they are limited as who can qualify.  I will not go into detail here on each program, but I will provide a links to blogs I have written in the past on each one.

VA Mortgages are a true 100% financing mortgage.  VA does not require any downpayment, and no PMI.  VA Mortgages are available to both First Time Buyers and Existing Homeowners, but are limited to Military Veterans that are able to obtain a Certificate of Eligibility.

USDA/Rural Mortgages are also a true 100% financing mortgage, that is available to both First Time Buyers and Existing Homeowners, but does require a very small PMI payment.  USDA/Rural Mortgages are also limited to certain geographic areas within each State, so borrowers need to check their USDA State Map to see which towns this mortgage program is available in.

Connecticut Housing Finance Authority (CHFA) is a subsidize mortgage program that is available to all First Time Buyers that are within CHFA Income Limits.  But CHFA Mortgages are also available to Existing Homeowners who are purchasing within a CHFA designated Targeted Area.  CHFA is not a true 100% financing mortgage program, because it does require a 3.5% downpayment, but it does allow eligible borrowers to borrow the Downpayment and Closing Cost on a second loan at the same subsidized interest rate.

As I stated above more details on each of these programs are available by clicking on the links that I have provided to each one. 

These are the programs that are available here in Connecticut, but there maybe other Mortgage Programs that are available in other States. Borrowers should check with a local Loan Originator to find out what 100% finance Mortgage Programs are available to them.

 

Previous FAQ's Blogs.

"What Do I Need To Do To Get Pre-Qualified For A Mortgage?"

"What Do You Mean I Need Money For Closing Costs?"

"Why Do I have To Pay For A Full Year Of Homeowners Insurance Up Font When I Am Paying For It Every Month In My Mortgage Payment?"

"How Can I improve My Credit Scores?"

"PMI/MI Why Do I Have To Pay It?"

"At What Point Can I Get Rid Of The PMI Or MI?"

"I Don't Want To Pay Any Points?"

"Do I Have To Escrow My Taxes & Homeowners Insurance?"

"Why Is The APR Higher Than The Interest Rate?"

 

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  Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Charles Stallions 06/03/2012 01:36 PM
Topic:
Mortgage / Finance
Location:
Connecticut
Groups:
Real Estate Rookie
ActiveRain Contests
Realtors®
Mortgages
1st Time Buyers
Tags:
no money down mortgage programs

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Rainmaker
385,528
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL

Great post and this is a question I'm sure in these market times comes up more and more. Thanks for the information.

May 25, 2012 02:11 PM #1
Rainmaker
1,053,384
Nick T Pappas
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

George, I think I've missed a few of your FAQ Posts...I'll go back and check them out.  As for this one...great info as usual.  I've had several clients use USDA loan programs...I've also had a few not qualify because of what I think are relatively low income requirements...still it's a great program even with the funding fee and small monthly PMI.

May 25, 2012 03:07 PM #2
Rainmaker
1,132,935
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

George, i so love the VA loan program for our men & women who have served and are still serving in it...it does make it affordable to buy a home with it.

May 25, 2012 04:40 PM #3
Rainmaker
1,726,651
Debbie Gartner
Floor Coverings International - Westchester NY & Stamford CT - White Plains, NY
The Flooring Girl - Westchester hardwood flooring

This FAQ thing is really working out for you...you are getting a ton of features.  Congrats.  I think you found a new formula on here. way to go.  First time home buyers are in great shape if they call the expert - George Souto.

May 25, 2012 05:01 PM #4
Rainmaker
418,699
Pete X with X Group Real Estate Advocates, Huntington Beach, CA 714.459.2017 OCLister.com
Investments to Luxury - Huntington Beach, CA
Outstanding Agent Referrals-Nationwide

My sister Cheryl has her own no money down program.

First she finds a house and than finds a guy with money, done it on four homes.

May 25, 2012 05:21 PM #5
Rainmaker
1,106,217
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Pete is pretty funny!  However,  some guys just don't have the money...   so, this is a good post on what programs may be available.  NH has a program similar to CHFA, but there are restrictions and income limits.  There certainly are some options for buyers and it is good to check with a professional like yourself.

May 25, 2012 06:37 PM #6
Ambassador
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Judi K Barrett
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma - Idabel, OK
Broker/Owner, Integrity Real Estate Services -IDAB

That's very similar to the list that I run through with buyers when they ask except for the Maryland program... but we do have an Oklahoma Advantage program.. 

May 25, 2012 07:34 PM #7
Rainmaker
871,258
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

George, I like that there are programs for no money down, and I dis-like the PMI - removal process, but thems  the breaks for these deals.

May 25, 2012 07:50 PM #8
Rainer
153,882
Kevin O'Rourke - Keller Williams Miami Beach Realtor
Keller Williams Miami Beach Realty - Miami Beach, FL
CDPE Miami Short Sale Agent 305-520-9436

Great info George. No doubt this is music to the ears of First Time Homebuyers especially.  Even though prices have drropped in recent years, it can still be a challenge to come up with the down payment.

May 25, 2012 08:34 PM #9
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Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

George, that's interesting. I thought all 100% mortgage programs disappeared but with this, I can get a good home for deserved buyers..

May 25, 2012 09:59 PM #10
Rainmaker
1,029,390
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I use VA and USDA loan products all the time. Even with no money down, the default rates with these prodcuts are some of the lowest of all loan products.

Great job with the 10 part series!

May 26, 2012 03:55 AM #11
Rainmaker
1,347,126
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

good in the business information post especially for the military buyers....VA is a good program

May 26, 2012 07:00 AM #12
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