0% Down Purchase Mortgage with Down Payment Assistance Now Available!

Posted on May 17, 2024 by Anthony Bird - First Time Home Buyer, Second Mortgage, Zero Down Loans

Available today May 17th, 2024 we are excited to announce our new 0% Down Purchase Mortgage! This program is available to first time homebuyers with no income limits! Repeat buyers are also eligible if they meet income limits for their area.

With this Down Payment Assistance Program (DPA), the borrower will get a conventional mortgage at 97% of the purchase price and a 2^nd mortgage for up to $15,000. This second lien will have 0% interest and no monthly payment required!

Down Payment Assistance Highlights

Fast Closings with no 2^nd underwrite required
May have seller paid closing costs
Available for First Time Homebuyer with no income limits!
Also Available for Repeat Homebuyers!
Up to $15,000 in Down Payment Assistance

0% Down Mortgage Requirements

Borrower must either be a first time homebuyer or under income limits if repeat homebuyer
Must qualify for conventional mortgage guidelines
30-year fixed primary purchases only
- 1 Unit single-family, PUDs, condos
- No manufactured homes
Down payment assistance can cover up to the lesser of 3% or $15,000 of the down payment
- Second lien is due in full as a balloon payment upon refinance or final payment of the mortgage, or a payoff
- No required monthly payment on the second lien
- Second lien does not accrue interest
All Home Possible® or HomeOne® guidelines must be met, based on borrower eligibility
- LPA findings must be Accept
- Home Possible® or HomeOne® price caps will apply
Minimum FICO
- 0% Down Purchase – Home Possible® = 620 FICO
- 0% Down Purchase – HomeOne® = 700 FICO
For 0% Down Purchase Home Possible®: only eligible for borrowers with income at or below 80% Area Median Income.
- Freddie Mac Freddie Mac Home Possible® Income & Property Eligibility Tool
No AMI restrictions on 0% Down Purchase HomeOne® when at least one occupying borrower on the loan is a first-time homebuyer.

0% Down Payment Mortgage Examples

EXAMPLE 1:

Sales price is $300,000, appraised value is $290,000

3% of $290,000 = $8,700

Second lien = $8,700

EXAMPLE 2:

Sales price is $600,000, appraised value is $650,000

3% of $600,000 = $18,000

Second lien = $15,000 (assistance cap)

Apply for 0% Down Mortgage with Down Payment Assistance

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Disclaimer: Information subject to change. Certain restrictions apply. Subject to approval of borrower and investor guideline requirements. Down payment is provided as a 2nd lien against the subject property. 2nd lien bears a 0% interest rate and cannot exceed a $15,000 loan amount. 2nd lien has no minimum monthly payment requirements, a term of 360 months and is fully due as a balloon payment upon the occurrence of either a refinance of the 1st lien, payoff of the 1st lien or the final payment of the amortization schedule of the 1st lien. Borrower must qualify based on Home Possible® or HomeOne® guidelines. Some exclusions may apply.