Do I need a down payment if I am a first time home buyer? I have heard that there are some no down payment options.

Question: Do I need a down payment if I am a first time home buyer? I have heard that there are some no down payment options.

Jeffrey G. from Gardner, Kansas

Answer: Great question, Jeffrey. Depending on where you are looking to buy a home there are some 0 to low down mortgage options. 

First there is a USDA RD guaranteed mortgage loan that so happens to be offered in Gardner, Kansas; as well as, some bordering rural communities. A home buyer can literally get into a home with Zero down with the seller paying some of the closing cost. I have helped several home buyers buy homes with this financing.

Not to be confused with the loan discussed, there is also a zero down USDA Direct Mortgage Loan. It is a subsidized mortgage loan that does have a repayment feature if the home buyer sells the home. Also, as a home buyers income increases, so does the mortgage loan monthly payments.

There is a VA mortgage loan that is available for qualified veterans. Much like the USDA RD mortgage loan, a home buyer can get into a home for zero down.

There are mortgage loan grants available to teachers, firemen and policemen in certain areas. If the seller pays the closing cost, a home buyer can get into a home with zero down.

Certain foreclosures in Kansas City, qualify for a $100 down payment. 

There is also a FHA Mortgage option that would require 1% of the home buyers money. A 2nd mortgage of 2.5% is obtained for the balance of the 3.5% down payment. If the seller pays the closing cost, a home buyer could get into a home with only 1% of their own money. 

There are also some first time home buyer grants that become available when they have money. Currently there is a grant available in Wichita, Kansas, Kansas City, and parts of Missouri.

Hopes this help. If you need any more assistance of buying a home, feel free to contact us.

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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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