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We are going to be losing some money on the sale of our home so we will not have a down payment for the purchase of our second home. Looking for some $ 0 down loan options and found the USDA loan but we exceed the direct loan requirements by $ 800.00! Is there any wiggle room or are there other options out there?

  1. Reply
    Beverly S
    February 9, 2014 at 5:18 am

    Sorry no. They are very strict. VA offers zero down if you are a Veteran. No other zero down.. FHA is 3.5% down.

  2. Reply
    February 9, 2014 at 5:50 am

    FHA over a low down payment mortgage loan that is normally about 3.5%, however, there is a FHA mortgage loan product that could be as low a s1% if you are qualified.

    The basic way this product work is the FHA mortgage lender you apply for your mortgage loan would find a mortgage lender that would be willing to lend you a 2nd mortgage of 2.5% of the down payment, which is 3.5%. Now your down payment is 1% of which this could be a gift from a friend, family member or charity.

    The 2nd mortgage of 2.5% down would be what is considered a silent 2nd mortgage. In other words you would not be required to pay a monthly mortgage on this mortgage loan. There is requirement that you would remain in the property. If you remain in the property for 10-15 years this mortgage loan is forgiven and you would never need pay it off.

    If you refinance the house or sell the house prior to the time frame of 10-15 years you would be required to pay a certain percentage based on the number of years you actually stayed in the property.

    You would need to contact a mortgage lender that is authorized to do FHA mortgage loans. Make sure, upon contact, with this FHA mortgage lender you ask about this FHA mortgage loan program and see if you would qualify for this mortgage loan product.

    You will find the application to be pretty much the same as applying for a USDA mortgage loan. You would also need the same documentation and information in completing the mortgage loan application.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  3. Reply
    Pascal the Gambler
    February 9, 2014 at 6:43 am

    Nope. If you don’t meet the criteria, then you don’t.

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