The scope of the first-time homebuyer tax credit was broadened. The deadline was extended to April 30, 2010, eligible current homeowners are included, the income level was increased, as was the maximum price for the home, and other factors of the tax credit changed, too.
One aesthetic that drew many homebuyers was that, for Federal Housing Administration (FHA) home loans, the tax credit could be borrowed against in the form of a “bridge loan” for a down payment or closing costs. A bridge loan is used when funding is expected in the near future and is only intended as a short-term loan.
For those who are active or retired military, the Department of Veteran Affairs (VA) loans have always been a good mainstay. With nothing down, you can purchase a home at a typically lower-than-market interest rate. The U.S. Housing and Urban Development (HUD) program has a program that is not a no down payment, but one that requires only $100 down. The “$100 Down Payment” program lets you buy a HUD home with a down payment of only $100.
The Good Neighbor Next Door Program (GNNB) is a HUD program that enables opportunities for public servants to purchase a home in specific communities for 50 percent off the list price of the home if FHA financing is obtained. If you are a full-time teacher, fireman, law enforcement officer or EMT, you are eligible for this program. Although this is not a “no-down-payment program,” HUD’s “$100 Down Payments” program can be applied to the GNNB in that only $100 is needed for a down payment if purchasing a HUD home. You get 50 percent off and only put down $100.
Homeownership Vouchers is another HUD program and it offers first-time home buyers the opportunity to buy a home with nothing down and receive mortgage assistance, along with help to pay other costs related to home ownership. You local Public Housing Authority (PHA) can assist you in the application process. The United States Department of Agriculture (USDA) provides two offerings that enable anyone who wants to live in a community to purchase a home with no down payment. Both offerings fall under the USDA Direct & Guaranteed Loans program.
Programs are offered through your state, county and local governments, along with non-profit agencies. Contact your state housing authority for details about programs in your local area – e.g. New Mexico Housing Authority, Maine Housing Authority, etc.
Other no down payment strategies include leasing with a purchase option, property trade and assumption loan. Lease a property with a contract that states you will buy the home for a set amount on a set date. Make sure that a significant amount of your lease payment goes toward the down payment of the home. Some homeowners have been known to trade properties of the same value. Assuming someone else’s home loan doesn’t always require a down payment, either.
Ki’s site helps buyers search homes in the Austin MLS http://www.escapesomewhere.com/realestate_searchthemls.html along with providing information on Austin real estate http://www.escapesomewhere.com market and historical mortgage rates http://www.escapesomewhere.com/mortgageinterestrates.html
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