With Phoenix ramping up to be one of the hottest home markets in 2021, it would be in your best interest to at least entertain the idea of buying your first home. Now, we understand that this is something that’s easier said than done. Indeed, buying your first home is a significant financial decision due to the many factors that play into this, such as your personal finances. However, what if we told you that you can buy a home without putting down any money on your down payment?
This is something that’s entirely possible, especially for first-time homebuyers in Phoenix. If this is something that you’re interested in, read on for our first-time buyer’s guide on how to buy a home with $0 down!
$0 Down Payment Loans
First-time homebuyers can get a good deal when it comes to their mortgages. This is because they have access to low-down-payment mortgages that are designed to help people purchase their first homes. And while that’s appealing, what you want to know is how to purchase a home with $0 in down payments. Well, in order to go zero down, you need to be able to fulfill one of two special requirements.
The first option is the Veterans Affairs (VA) Loan. The VA loan is a mortgage loan that’s available through a program established by the United States Department of Veteran Affairs. To qualify for a VA Loan, you must either be an active member of the nation’s military or a retired member with 90 days of active duty wartime service or 181 days of continuous active peacetime service. It’s important to note that the surviving spouses are also eligible for the loan.
The second option is the USDA Loan, which is backed by the United States Department of Agriculture (USDA). Alternatively, this loan has been called the Rural Development Guaranteed Housing Loan. To apply for it, you have to be a legal resident of the United States, and your income must not exceed the income cap set by the USDA. The home you are purchasing must also be in a rural area as defined by the USDA. Lastly, the property that you’ll be purchasing with the loan must not exceed 2,000 sq. ft.
Alternative Loan Options
What if you don’t qualify for either of the two options for $0 down? Well, there are quite a few options for housing loans with low down payments. While these don’t necessarily allow you to purchase a home without paying a down payment, this doesn’t mean that no good deals exist for you.
In fact, some conventional loans allow you to purchase a house with just 3% down. Now, this all depends on your credit score. The better your credit score, the better the deal! If you’re looking for a home loan in Phoenix, we here at Desert Springs Mortgage are ready to help you out. We offer first-time homebuyers in Phoenix options that allow you to pay as low as a 3.5% down payment, depending on your credit score.
Buy Your First Home with Desert Springs Mortgage
At this point, you now know that purchasing your first home doesn’t have to be a complicated process. Hopefully, this article has helped you on your journey to buy your first home. While $0 is ideal, do know that there are a slew of other great options if you don’t qualify for the zero-down loans!
Desert Springs Mortgage is a full-service mortgage company in Phoenix, Arizona. We offer our clients FHA loans, VA loans, asset-based lending, and other financing options. For more information, visit our website or call us at (623) 432-1309!