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No Money Down Loans - Get a Mortgage Loan with No Money Down - 80-20 Mortgage, USDA Loans

Types of No Money Down Loans

home purchase payment type

Do you want to buy a home, but you just don’t have the money to make a down payment? If so, there is a solution. No money down loans allow people to purchase homes without paying the 20% down payment that is customary with mortgage loans. This helps people who are financially strapped get into new homes. There are several options for obtaining one of these loans.

80-20 Mortgage

An 80-20 mortgage is a legitimate way to purchase a home without paying any money down. This type of loan is often referred to as a piggyback loan, as one loan piggybacks off the other. If you choose to get this type of mortgage, you will take out two loans. The first will be for 80% of the purchase price, and the second will be for 20% of the purchase price. Thus, you will get 100% of the home financed. In addition, your realtor can negotiate for the seller to pay all closing costs, so you will be able to sign the papers without paying any money up front.

USDA Loans

If you have your sights set on rural property, you might be able to obtain a USDA loan. The United States Department of Agriculture offers mortgage loans with no money down, but only if the home is located in an approved rural location. These no money down loans are available as direct and indirect loans. If you quality for a direct loan, you will get your money directly from the government. If you qualify for an indirect loan, your money will come from a different lender, but the government will back it. Thus, your money will be guaranteed, no matter which type of loan you receive.

No Money Down Loan with the VA

If you are a veteran, you may be able to get a no money down loan from the U.S. Department of Veterans Affairs. The government backs these loans, and an outside lender provides the money. Veterans have to go to a mortgage lender that has been approved by the VA in order to get this type of loan.

Don’t let a down payment keep you from getting your new home. There are agencies out there that will work with you and help you get your house, even if you don’t have money for a down payment. If you don’t have much cash on hand but want to purchase a home, consider one of these options so you can buy the home of your dreams.

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