Since August when the credit markets began to tighten, we have seen mortgage guidelines continue to change, but going into 2008, there are still great options available for home buyers with little or no down payment available. Some of the major differences in the zero down loan programs include: the level and cost of mortgage insurance required, income limitations, credit score requirements, asset requirements, documentation requirements, whether a non-occupant co-signor is allowed… the list goes on.
Here is a short list of the zero down loan programs that we are using to help people finance homes:
House Key – offers subsidized interest rates to first time home buyer's. Also known as a State Bond Program. There are household income limitations and a Home Buyer Education seminar is required. This is a fantastic loan for qualified borrower's. The funds actually run out from time to time for this program because of it's popularity, but new funds will be available February 2008 and Jim and I will be offering free Home Buyer Education seminars. www.wshfc.org.
Flex 100 – Available in 30 year fixed and Fixed Period (Hybrid) ARMs and interest only ARMs. No income restrictions and you don't have to be a first time buyer.
Conforming Hybrid ARM – Similar to the Flex 100 but only available in 5 to 10 year fixed period AMRs. Currently has better pricing than the Flex 100.
FHA – requires 2.85% down, but has no minium credit score requirement, allows the down payment to be gifted by a family member and allows non-occupant co-borrowers for qualifying.