Coldwell Banker Residential Brokerage
Liza Vernazza, Coldwell Banker Residential BrokeragePhone: (650) 218-8040
Email: [email protected]

Home Loans That Require No Down Payment

by Liza Vernazza 11/10/2019

Perhaps one of the most challenging things about buying a home is saving for the downpayment. Collecting such a large sum of money can be difficult. The truth is that most buyers actually think that they need more than they actually do to buy a home. The downpayment doesn’t need to be a barrier to your path to homeownership. There are so many programs that offer low and even no down payment home loans. Read on to learn more about down payments and programs that can help you. 


First, let’s look at what a down payment is and how it can help you. If you put 10% down on a $200,000 home that’s $20,000. The downpayment minus the purchase price of the home is $180,000, and that's how much your home loan will be. The more money you can put down on the house, the lower your home loan will be and the lower your monthly mortgage payments will be. A large down payment can indeed save you in the long term. If you’re looking to move into a home sooner rather than later, saving a considerable sum isn’t always possible.  


Low Downpayment Mortgages


You need to decide what type of home loan you need by the amount of downpayment you’re willing and able to put down. Some benefits go along with making a down payment, but there are some negatives. 


By making a substantial down payment you may despite your savings, leaving little money for emergencies. Your mortgage rate may not be affected by a large downpayment either. It can be hard to decide what type of loan to get and just how much you really can afford.  


FHA Loans


FHA loans are among the most popular type of home loans. The downpayment that’s required is just 3.5%. The requirements are simple, and you don’t have to be a first-time homebuyer to qualify. 


The drawback to an FHA loan is that you cannot cancel the monthly mortgage insurance that comes along with it unless you refinance the home. Traditional mortgage insurance is canceled when you have built up 20% equity in the house, but this isn’t the case with FHA loans. 


Another positive about FHA loans is that your credit score doesn’t have to be stellar in order for you to qualify. Some lenders approve FHA loans with credit scores as low as 580. 


VA Home Loans


Buyers who have current or former military service status can qualify for this zero down mortgage. These loans are benefits to veterans and current members of the Armed Forces. While no downpayment is required, buyers may put down any amount they wish. The only requirements are that buyers be members of the military either currently serving for 90 days or two years of active duty service if not an active member.   


The above options are great for those who can’t afford or don’t wish to put down large down payments but still hope to be homeowners. 


About the Author
Author

Liza Vernazza

Since 1988 Liza has assisted her clients and friends to realize their dream of homeownership. Whether it be a small condo or a large home, with her strong people skills and negotiating skills, she has assisted them to buy or sell the property of their choice. 1031 Tax Deferred Exchanges, First Time Buyers, Move-up buyers and sellers, Probate and Trust sales are just a few of the types of transactions Liza is experienced in. Additionally, she has successfully represented investors, short sale transactions and bank owned or REO properties. If you are looking for a Realtor that is current with the market, give Liza a call and see the difference!

Education:

Liza recieved the Lifetime Million Dollar Club Award in 1990 only after two years in the Real Estate Business. As a graduate of Anthony's School of Real Estate and a member of the California Association of Realtors, National Association of Realtors and the local SAMCAR Board of Realtors, Liza is always actively pursuing educational opportunities to enhance and further her knowledge of the real estate business.

Professional Philosophy:

"I pledge to earn the loyalty of you, my client, and to be sensitive to your concerns and your needs. I will give you 100% of myself and I will share in your enthusiasm and excitement of finding that special home or marketing your old home. I have a love for my work and continue my education to strive for excellence."

Personal Background:

Liza has lived all her life in the San Carlos and Redwood City area. She is married with two beautiful children and one dog. Currently living in the Emerald Hills area of Redwood City, Liza has been an active volunteer and supporter of Roy Cloud School and and is a current volunteer and a member of the Parent's Association at Notre Dame High School.

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