The fear of not being able to come up with the down payment is often the most common reason people feel they will not be able to purchase a home.   They might be surprised to learn that a large down payment is not always required.  In fact, depending on the circumstances, it is quite possible to purchase a home without any down payment.

The United States Government has been instrumental in creating programs which allow low-to-moderate income people to purchase a home with little-to-no down payment.  In 1934, the Federal Housing Administration (FHA) was created in order to stimulate the economy through the purchase of homes.  The government continues to implement similar programs with the same intent.  Listed below are some of the available loan programs.

FHA – The down payment on a FHA loan can be as little as 3% of the purchase price of the home or less.   To learn more about FHA loans, contact an FHA lender. 

FHA 203(k) Loan – This is a FHA loan that allows you to buy a home that is in need of repairs and include the cost of repairs in the amount financed.  Since it is an FHA loan, the 3% or less down payment requirement applies.  To learn more about the FHA 203(k) Loan, visit the FHA website

FHA 203(b) Loan – This is a FHA loan designed for first time homebuyers.  Since it is an FHA loan, the 3% or less down payment requirement applies.  To learn more about the FHA 203(b) Loan, contact an FHA Lender.

Officer-Next-Door Program – This is a government program designed to make our neighborhoods safer and to make home ownership easier for officers.  In order to qualify, you must be a full-time, sworn law enforcement officer.  This type of loan requires as little as $100 down payment.  To learn more about the Officer-Next-Door loan, visit the FHA website.

Teacher-Next-Door Program – This is a government program designed to make our communities stronger and to make home ownership easier for teachers.  In order to qualify, you must be a full-time public or private school teacher.  This type of loan requires as little as $100 down payment.  To learn more about the Teacher-Next-Door loan, visit the FHA website.

Local Homebuying Programs – In addition to federal loans, there may be loan programs available to you in your area.  To learn more about local homebuying programs, visit the FHA website.

Veterans Affairs Mortgage Programs – This is a government program designed to help active duty and veterans buy homes.  This type of loan requires no down payment.  To learn more about the VA Mortgage Program, visit the VA website.

Rural Community Program – This is a government program designed to build stronger and more vibrant rural communities.  This type of loan may be obtained with no down payment.  To learn more about the Rural Community Program, visit the USDA website.