For borrowers who want to purchase a home, several “zero” and low down payment loan programs are available today. They include:
VA Zero Down Purchase loan program for eligible Veterans. Available to Veterans and active duty service members with at least six month’s service. Certain loan limits and VA funding fees may apply. South Sound Home Loans offers VA purchase loans down to a 550 mid score for credit at competitive rates.
US Department of Agriculture (USDA) zero down purchase programs are available for purchases in rural areas. (Check USDA website for eligible areas). Program subject to income limits by County and requires USDA mortgage insurance. Scores down to 580 are acceptable.
1% Down Conventional Loan Purchase Program. For borrowers who are not Veterans and desire to purchase homes in urban and suburban areas, South Sound Home Loans offers a 1% down purchase loan. The bank will contribute 2% towards the 3% down requirement for eligible borrowers. Requires a 640 mid score and may be subject to income limits depending on where house is located.
3% Down My Community and Home Possible Conventional Loan Programs are available and are subject to income limits but have no geographical restrictions. Requires 620-640 minimum middle credit scores.
3.5% down FHA Purchase Loans. Available for all areas loan limits by county do apply. (Thurston County, WA limit is $ 289,000). Requires scores of at least 580 and all loans are subject to upfront and monthly FHA mortgage insurance premiums.