paying closing costs and paying the downpayment or not the same thing.
the down payment is the down payment.
closing costs are the costs the are paid to close the property -- this is generally loan fees, appraisal, inspections etc.
Yes, you can still get 100% financing but you would get it through an 80/20 loan or an 80/10/10 loan.
We are planning to get a direct USDA rural development home loan. For this loan seller pays most if not all of closing cost, and it is 100% financed from the government. No downpayment required. It has a lower than market interest rate, and 33 year terms.
For a guaranteed USDA rural development loan you pay a low closing cost and no money down. 30 year term, market interest rate.
For both it must be in a rural place, has to be a modest home. For direct loans you have to be fairly poor (<80% of median income for area). You DO NOT need a PMI on USDA rural development loans. The USDA loans are the BEST loans there are. Okay, maybe there is some rare obscure thing somewhere in the world, but this is pretty much the best you can hope for in a home loan, but there are many criteria to meet, including this is the ONLY property you own, and you live in it. You cannot make money off of renting it out etc. No used manufactured homes allowed either.
Amount of loan is capped around $150,000 for most places, but varies by area. There are stipulations. Also the direct loan takes about twice as long as other loans.
There are still government loans with 100% financing, because there is a democrat in office. Once he is gone no guarentees. And even now with the republicans pressuring to cut costs, no promises it will be around much longer.
FHA loans are still quite common, and they are only a 3.5% down loan, with reasonable closing costs etc. Less stipulations about where the house is, and what house you get. You do need a PMI (private mortgage insurance) for FHA loans, and for that your looking at close to $100 a month, depending on how much house you are getting etc. If you don’t get a PMI, you need to do a piggyback loan (for the rest of the downpayment).
You must have decent credit and be able to afford the home for all of these loans (they look at income, house should be around 25% of total income or less, but varies a bit by loan program).
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