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

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

Comments 12 New Comment

Rainmaker
842,148
Steve Loynd
800-926-5653, White Mountains NH
Alpine Lakes Real Estate Inc.,

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
Rainmaker
135,057
Kevin O'Rourke - Keller Williams Miami Beach Realtor
CDPE Miami Short Sale Agent 305-520-9436
Keller Williams Miami Beach Realty

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
Ambassador
1,194,697
Praful Thakkar
Andover, MA: Andover Luxury Homes For Sale
Keller Williams Realty

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
Rainmaker
777,340
Joe Petrowsky
Your Mortgage Consultant for Life
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709

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
Rainmaker
1,110,269
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

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

May 26, 2012 07:00 AM
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George Souto

Your Connecticut Mortgage Expert
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