{"id":4237,"date":"2024-11-08T11:12:55","date_gmt":"2024-11-08T16:12:55","guid":{"rendered":"https:\/\/tomo.com\/blog\/?p=4237"},"modified":"2024-11-08T11:13:06","modified_gmt":"2024-11-08T16:13:06","slug":"0-down-mortgages-do-they-exist-or-are-they-just-a-dream","status":"publish","type":"post","link":"https:\/\/tomo.com\/blog\/0-down-mortgages-do-they-exist-or-are-they-just-a-dream\/","title":{"rendered":"0% down mortgages: do they exist, or are they just a dream?"},"content":{"rendered":"\n

Hey there, future homeowners! So, you\u2019ve probably heard whispers about the elusive 0% down mortgage<\/a>\u2014the magical unicorn of home financing. You might be wondering, “Do they even exist?” Let’s dive into the nitty-gritty and see what\u2019s really out there for those of us not swimming in cash (aka most of us).<\/p>\n\n\n\n

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How much home can I afford?<\/a><\/div>\n<\/div>\n\n\n\n

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What are 0% down mortgages?<\/h3>\n\n\n\n

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In the simplest terms, a 0% down mortgage allows you to purchase a home without putting any money down <\/a>upfront. Sounds great, right? But before you start dreaming of the perfect home with zero dollars in your pocket, let\u2019s get real. While most homebuyers won\u2019t qualify for a 0% down mortgage, there are options that get pretty close.<\/p>\n\n\n\n

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What\u2019s actually out there?<\/h3>\n\n\n\n

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  1. VA Loans<\/strong>: If you\u2019re a veteran <\/a>or active military, you\u2019re in luck! The Veterans Affairs <\/strong>(VA) loan program <\/a>offers 100% financing, meaning you can buy a home with no down payment. Sweet deal, huh? Plus, there\u2019s no private mortgage insurance (PMI<\/a>) required, which keeps your monthly payments lower (although they do\u00a0 have a one-time VA funding fee, typically 2.15% of the loan amount for first-time users (ranging from 0.5% to 3.3%)).<\/li>\n\n\n\n
  2. USDA Loans<\/strong>: If you\u2019re looking at rural properties, the U.S. Department of Agriculture (USDA)<\/a> offers loans that also allow for 0% down payment. You need to meet certain income criteria, but it\u2019s a fantastic option for those who qualify.<\/li>\n\n\n\n
  3. FHA and Conventional Loans<\/strong>: While not 0%, you can snag a 3-3.5% down payment option with Federal Housing Administration (FHA) loans<\/a> and some conventional loans<\/a>. These are popular choices for first-time homebuyers, making homeownership a little more accessible.<\/li>\n\n\n\n
  4. State Assistance Programs<\/strong>: Many states have programs designed to help first-time buyers with down payments, offering grants or second mortgages to cover that initial cash outlay.<\/li>\n<\/ol>\n\n\n\n

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    The buyers\u2019 market advantage<\/h3>\n\n\n\n

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    If you’re shopping in a buyers’ market<\/a> (you know, when there are more homes than buyers), you might be able to negotiate with the seller to cover some of your closing costs. This can effectively offset your down payment, especially if you have a skilled real estate agent<\/a> in your corner. Remember, negotiation is key!<\/p>\n\n\n\n

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    Are 0% down mortgages worth it?<\/h3>\n\n\n\n

    While true 0% down mortgages aren\u2019t as common as you might hope, there are plenty of options to get you in the door with minimal upfront costs. So, before you throw in the towel, explore your options, and don\u2019t forget to talk to your mortgage lender about the best path for you. Give us a call today at 737-510-2523<\/a><\/p>\n\n\n\n

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    See today’s rates<\/a><\/div>\n<\/div>\n\n\n\n

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    Claire Gallaudet<\/a><\/p>

    Claire is a Mortgage Analyst at Tomo, where she explores the data and trends shaping the housing market. She is especially interested in how economic forces impact homebuyers. A Seattle native, she now lives in Austin, where she balances analysis and communications with teaching yoga and walks around the lake with her dog.<\/p><\/div><\/div>\n\n\n

    If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    Hey there, future homeowners! So, you\u2019ve probably heard whispers about the elusive 0% down mortgage\u2014the magical unicorn of home financing. You might be wondering, “Do they even exist?” Let’s dive into the nitty-gritty and see what\u2019s really out there for those of us not swimming in cash (aka most of us). What are 0% down […]<\/p>\n","protected":false},"author":31,"featured_media":4238,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,38],"tags":[],"class_list":["post-4237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-buying-guide","category-mortgage-dictionary"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2024\/11\/0-down-mortgage-jpg.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/comments?post=4237"}],"version-history":[{"count":1,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4237\/revisions"}],"predecessor-version":[{"id":4240,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4237\/revisions\/4240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media\/4238"}],"wp:attachment":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media?parent=4237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/categories?post=4237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/tags?post=4237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}