Many buyers that I talk to want to buy a home with as little initial investment as possible. When you buy a home the initial investment consists of earnest deposit, down payment, closing costs and pre-paids.
One way to lower these cost is to utilize loan programs which require little or no down payment. There are several options for a 100% loan. Keep in mind, you must qualify for these programs.
1) VA If you are a veteran, you may qualify for this loan. This is an excellent benefit! There is 0 down payment required! There is an up front funding fee but no monthly mortgage insurance so your payment is fairly equivalent to an FHA loan with 3.5% down!
2) NIFA HBA (Nebraska Investment Finance Authority - Home Buyer’s Assistance) This is for a first time home buyer or someone who has not owned a home in the last 3 years. There are purchase price and income maximums as well. This loan pairs with an FHA or CONV loan. The down payment is covered by a 2nd loan which is at a very low rate amortized over 7 years. You must have a minimum investment of $500 for an FHA loan and $1000 for a CONV loan. See www.nifa.org for more information.
3) USDA This is a 100% loan program for homes in rural areas. There are income maximums. The buyer must take a home buyer’s education course. This is a great fit for those who want to live in a smaller town and don’t have a down payment. Our Eagle area qualifies for this type of financing. See www.rurdev.usda.gov/ne
4) We don’t have a 100% loan, but when you buy a Hartland Home, you can save a lot on your initial costs! We pay up to 2% of your closing costs (ave. of $2500). Also, when you purchase a new home, if you don’t make too much money, you may qualify for an impact fee rebate. This rebate is credited directly towards your down payment reducing the amount of money you need at closing! Maximum rebate at this time is approximately $4600!
