Zero Down Home Loans

It's Still Possible To Get Zero Down Home Loans.

There are two primary methods to get a zero down home loan. One method is to borrow the down payment, and the other method is to have the seller provide the down payment as a gift to you.  First time home buyers can get down payment assistance in the form of outright grants as well as low interest loans. First time buyers should also visit first time home buyer grants.

All others seeking a zero down home loan can also use one of the two methods described above. The process is relatively simple. Say you want to buy a house, but you don't have the money for a down payment. There are two methods available to you.

First, you could simply ask the seller to hold a second mortgage of 20% of the purchase price. In this market, finding sellers willing to finance the down payment in the form of a second mortgage is quite easy.

Second, if you really want a specific house and the seller is unwilling to finance the down payment for you, you could sign up with a third-party intermediary, typically a tax-exempt charitable organization that advertises its specialty. The seller of the house sends a contribution to the organization roughly equal to the money you need. The intermediary pockets a fee of $400 to $600 and passes along the balance for the down payment. Either of these options will let you buy a house with zero down.

Best Lender For Zero Down Home Loans

Unfortunately, some lenders do not like to work with buyers who use creative methods to achieve a zero down home loan, and prefer instead to only provide mortgages to people who are putting down the traditional down payment of 20%. One lender that will do whatever it can for applicants is ING DIRECT Orange Mortgage. They have great rates, an easy online application, and welcome all applicants. Additionally they have not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.