Get a Home Loan with Low or No Money Down

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How to get a Home Loan with little to no money down

If a down payment is keeping you back from home-ownership, you should know there are a few ways to solve this problem and still accomplish your dreams. Various home loan programs for first-time buyers and any qualified buyer offer low or no money down home loans. Here are the most popular ways to get “low or no money down” home loans.

House Obtained with Home Loan

FHA Home Loans

One of those ways is with a FHA loan. If you have a credit score of 580 or higher, you can get a FHA Home loan from an approved lender, such as National Home Finance, with only 3.5% down. Lower scores will have to pay 5% down.

First-time homeowners may consider FHA loans as their best option because they carry certain advantages over traditional loans. They are easier to qualify for and the down payment is lower than a traditional loan. Also, those with lower or fixed incomes may find the FHA home loan most desirable.

Advantages of an FHA loan include:

  • Lower down payment requirements
  • Lower credit score qualifying
  • Lower closing costs

The FHA does not make a loan directly; rather, your FHA-approved lender, such as National Home Finance, will make the loan, but it is insured by the government. This reduces the lender’s risk and thereby lowers your out-of-pocket costs.

Seller Financing Home Loans

In some instances, you may find a seller who is willing to finance a property for you. Seller or “Owner Financing” is negotiated between the buyer and seller. You may be able to get a home with no down payment in this way. Seller financing is rare but you may find such a deal if you look for it hard enough.

100% Financing: Veterans Administration Home Loans

After the housing crisis and recession of 2008, this type of loan is much harder to obtain. Generally, it is true that the more a buyer has invested in a property, the more willing he or she is to keep paying their mortgage payments. That is why most loan programs require a down payment.  However, there are still a number of ways to get a home loan with no money down. If you are affiliated with the U.S. military, your best option for a 100% home loan is a Veterans Administration loan. These loans are not made by the VA; but by a VA-approved lender such as National Home Finance.

US Department of Agriculture Rural Development No Down Payment Home Loan

You may think the USDA is all about farms and properties that are “out in the sticks,” but you may be pleasantly surprised to find out that these loans can be obtained by average people (non-farmers) and even in cities, in some cases. They offer a home loan with 100% financing and no down payment. As with other government-backed home loans, the USDA Rural Development loans are not made by the government, but by a government-approved lender, such as National Home Finance.

Expert Assistance is Available

National Home Finance has highly skilled mortgage financing experts available to assist you. Our staff can tell you in detail about each of the loans in this article and what you need in order to qualify. Give us a call at 800.324.4415 or visit our website at


VA Loans

USDA Rural Development Loan Assistance

FHA Loans


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