Top Three No Down Payment Mortgage Options for Homebuyers
Discover three leading lenders offering no down payment mortgage options: VA Loans, Navy Federal Credit Union, and USDA Loans. These programs assist eligible buyers with zero upfront costs, making homeownership more accessible. Each option comes with specific eligibility criteria, funding fees, and benefits, catering to veterans, military personnel, and rural residents alike. Explore your options to find the right zero down payment mortgage for your needs and turn your homeownership dreams into reality.
Leading Providers Offering Zero Down Payment Home Loans
Many prospective homeowners seek mortgage options that require little to no upfront payment. While such zero down payment loans are uncommon, a few lenders do offer this benefit. Here are three prominent providers that provide home loans without down payment requirements:
Veterans Affairs (VA) Loans
Eligible military personnel, veterans, National Guard, Reserves, and active-duty service members can access VA loans. These loans eliminate the need for a down payment and do not require mortgage insurance. The loan is funded through a fee paid by the borrower, added to the total loan amount. First-time applicants face a funding fee of 2.15% for military members and 2.4% for other eligible reserves and Guard members.
Navy Federal Credit Union
Navy Federal, the largest credit union by membership and assets, offers 100% financing options for qualifying primary members. Eligibility is limited to certain Department of Defense and military civilian employees, along with their immediate families. The credit union's funding fee is 1.75%, which is lower than the VA loan fee.
USDA Loans
The United States Department of Agriculture (USDA) is a significant provider of no down payment mortgages nationwide. Despite the name, USDA loans aren't limited to rural or farm properties. Borrowers should check their eligibility on the USDA website, considering income limits and location restrictions. While not exclusively for first-time homebuyers, many new borrowers find USDA loans easier to qualify for, especially with zero down payment options.
