The answer is generally no, in fact it is still possible to buy a home with no down payment. That said, not everybody will qualify for this mortgage program so I will mention a few things to consider if you are planning to buy a home with no down payment.

There are very few if any 100% purchase programs remaining in the mortgage markets today. Not long ago home buyers could get either one mortgage for 100% of the purchase price or combine a first mortgage for 80% of the value and a second mortgage for the other 20% of the purchase price. A lot has changed over the past 12 months as I’m sure you have heard and it is difficult to turn on your TV or surf the Internet without seeing something about the current mortgage crisis. So how does a first time home buyer purchase a home with no money down today? With a combination of an FHA mortgage and a 3% down payment made by the seller through one of many down payment assistance organizations.

FHA mortgages are readily available throughout the country and any one of our First Time Home Buyer Consultants can advise you on how to apply for an FHA mortgage in your area. The trick is to find someone who fully understands how the down payment assistance programs (DPA) work and has experience putting them together. The best results for this FHA mortgage combined with down payment assistance from the seller come from working with both a mortgage professional and a Realtor who both have experience with FHA and DPA programs. The easiest way to find experienced professionals is to call our home buyer hotline, or fill out our pre-approval form on  and a local qualified first time home buyer consultant will follow up with you. The other option is to start calling and interviewing Realtors and mortgage companies in the local yellow pages until you find someone who appears to know what they are talking about.

The bottom line is qualified buyers can still buy a home with no down payment and in my next post, I will talk more about the down payment assistance programs, specifically the Nehemiah program.


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