We are fortunate in our area to be able to offer several different No Down Payment Mortgage options. Below is a list of 4 different programs that could allow you to purchase a home without a lot of money out of your pocket:
USDA - The Indiana USDA / Rural Housing loan is our most popular loan program. The majority of our home buyers would like to purchase a home with no down payment and this is the perfect program for our area. The USDA program is available in most of the rural areas of Southern Indiana. If you would like to see if your town qualifies - you can click here: Southern Indiana USDA Property Eligibility Map
Indiana Housing - The Indiana Housing & Community Development Program (IHCDA) is a great program but very few lenders in Southern Indiana offer it. We are fortunate to be able to offer this program, and one of the big benefits of it is that it may allow a borrower to get a forgivable second mortgage for the down payment. You will need at least a 640- 660 credit score to qualify so if you are in this range it may be a good option for you.
VA - The VA Home Buyer program is a great benefit for those who have served in the military. We do a lot of VA loans, and we allow for a credit score of a 600. The program is a No Down Payment program and we can help you find out if you are eligible with the VA. Let us know if you have any questions about your eligibility.
FHA - Gift Program - You may not have considered it, but if you don't qualify for a Zero Down Payment program listed above, you may qualify for the FHA loan. The FHA program requires a 3.5% down payment, but it also allows the funds for the down payment to come from a family member. So, if you have a parent/child/sibling that would like to help you buy a home WITHOUT cosigning, this could be a great option.
FHA Gift Of Equity Program: Did you know that if you are buying a home from a family member the equity in the home may be used for your down payment? This is a great option, but there are restrictions with this so be sure to ask us!