Hal's Mortgage Blog

While down payment requirements have increased for some programs, it is still possible to buy a home with less than 5% down…or even NO money down.

For example, FHA offers a loan program that requires as little as 3.5% down. In addition, the VA and USDA offer loans that require no down payment. Of course, there are restrictions with each of these programs that can include maximum loan amounts based on your location with FHA loans, income and property requirements for those offered by the USDA, and your qualifying status as an eligible Veteran.

In addition to those programs, keep in mind that many sellers in today's market are willing to offer concessions, such as paying part or all of your closing costs. That can decrease the amount of funds you may be required to have to purchase your next home.

Here's a thought - suppose you buy a home with a zero down loan, then receive an $8,000 Tax Credit from the IRS as a First Time Homebuyer or $6,500 as someone who has previously owned a home in three of the last five years, didn't you just make money for buying a home?

That still boggles my mind but it's true. There are people doing it every day.