Mortgages > Buying A Home

Buy A Home In Santa Cruz County With Less Money Down

LOW and NO Down Payment Financing Options

Owning a home is the “American Dream”. Sometimes housing prices keep those with little money for a down payment from owning a home. A low-to-no down payment mortgage may enable you to buy a home without waiting years.

There are a variety of non-conventional loan programs that make it easier to buy a home today. This issue of FLASH POINTS is for those starting out, for those buying a home for the first time, for borrowers that are self employed or salaried, looking for no reserve requirements and a low down payment loan,

Read on to learn about some of the options that really do make home buying possible for anyone with good credit scores.

USDA – Section 502 - Low-Income - No Down Payment

Rural Housing Service (RHS) loan funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Applicants may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories.

(RHS) is an affordable home lending product designed to get residents in designated rural areas into a home for which they would not otherwise qualify.

Some of the most attractive features for this home loan include:

  • 100% LTV based on the appraised value of the home
  • No down payment
  • No cash reserves required (great for a first time home buyer)

Use The 80% - 20% Plan - Tandem Home Loan Program

Borrowers can avoid mortgage insurance with a Tandem alternative. By doing a first and a second mortgage home loan, borrowers avoid mortgage insurance, increase their tax deduction, or avoid Jumbo loan pricing and Jumbo payments. There's little or no extra paperwork, and you can save money in most cases.

When your down payment is less than 20%, a Tandem first and a second home mortgage loan is a great way to avoid mortgage insurance and/or Jumbo pricing, as well as save money on your total home monthly payment! The seller may contribute 3% of sale price towards buyer closing costs with this type of mortgage.

This mortgage has higher debt ratios and no income limitations. It's a great loan for someone who makes too much money for first-time homebuyer programs, but still needs a no down payment loan.

Government Loan Options - FHA / VA Home Mortgage Loan Program

Common government home mortgage loans include:

  • 203(b) Fixed Mortgage Rate Loan (First Time Home Buyer)
  • 251 ARM home loan
  • 234(c) Condo Financing home loan
  • FHA Streamline Refinance home loan
  • VA IRRRLs (interest rate reduction refinance home loan)
  • Teacher Next Door home loan

Many government loans allow minimum down payment and/or down payment assistance for a true zero no down payment home loan.

Flex 100 and Flex 97 - First Time & Move Up Buyer Loan

This program is ideal for the First Time Home Buyer and move-up borrowers who lack the funds for a down payment and closing costs but have good credit.

Borrowers may qualify for a Flex loan with as little as 3% down payment, and the down payment can be a grant, gift, an "affordable second" or "unsecured loan". Also, there are no median income restrictions and no first time home buyer education requirements.

This innovative program provides 100% and 97% financing with more flexibility in underwriting guidelines to create greater opportunities for low and moderate-income families to qualify for a home mortgage. This is a fixed rate, low down payment mortgage designed strictly for purchases of owner-occupied properties. There may be limitations on borrowers total income in some areas. The 3% down payment may come from flexible sources.

Fast & Easy - Great Price for Great Borrowers

The Fast & Easy home loan program offers borrowers with excellent credit a home loan up to 90% LTV/CLTV without verification of assets or income. This home loan program offers a great price for borrowers with high quality credit. Just like its name, it's fast, very easy, and there's an 80/10/10 with a Super Streamline HELOC under this home loan program to avoid Mortgage Insurance. Borrowers can be self employed or salaried, and there are no reserve requirements with a low down payment loan.

Stated Income and/or Stated Asset loans require no verification of income or assets; the loan is approved based upon the income and assets you state on your application and credit score.No verification of W2's, No Pay stubs, No Tax returns. NOTE: Available for W-2 wage earners, 1099, Self Employed, and Retired. Qualifying Debt to Income Ratios cannot exceed 32/40 (some exceptions acceptable). 2 years in same Job Profession (some exceptions are acceptable).

Income level should be appropriate for type of profession.

For more Santa Cruz mortgage information, get in touch with Lauren Spencer today. She'll be happy to answer your questions or point you in the right direction to help you find the answers you need. Send her a message or give her a call at 800.226.4717.

^ Buy A Home With Less Money Down