Smart Loan Lady Company

Most new home loan purchase programs that were once available with no money down have now gone the way of the dinosaur. However, if you meet eligibility requirements, there are still a few programs that allow a home purchase with little or no up-front money paid out of pocket.

100% VA Loan
If you or a spouse are an eligible veteran, you may take advantage of military service benefits by using the Veterans Administration 100% Purchase Loan Program. This program affords eligible veterans a flexibility that is unavailable in the conventional loan market.

A borrower with some history of credit issues may still be approved under this program. If you are tight on cash, you can even structure a purchase agreement to allow a home seller to pay all closing costs and settlement fees. 100% veterans loans make it possible for you to conclude a loan closing and keep every penny of your cash in your own pocket.

100% USDA Rural Development Purchase Loan
If you are flexible as to the location of your new home, the USDA Rural Development (RD) purchase loan may be your best option. This program was designed to promote home ownership in rural areas. If you don't want to live on a farm, that's OK, you might be surprised what communities the USDA deems to be rural. Communities and suburbs of major metropolitan areas that have populations of 20,000 or less may qualify as eligible RD areas.

Like VA loan products, RD loan underwriting affords more flexibility than conventional loans. Prior credit issues may not disqualify a buyer. The RD loan will also allow a home seller to pay all of the buyer's closing and settlement costs. A unique feature of the RD loan is that a home seller can pay off a buyer's debts, to help qualify them for the RD loan

Utah Housing
Utah Housing loans allow an eligible borrower, to borrower their down payment and closing costs. Borrowers are able to purchase a home with little or no cash investment at a competitive interest rate.

Income and Sales Price of the property cannot exceed limits as listed on UHC Web-site. Based on the location of the home you wish to buy, the total household income from all sources must be less than the Income Limits shown in the Eligible Income Limits box on the Utah Housing website.

Other states may have similar programs.

Down Payment Grant Assistance Programs
The down payment assistance (DPA) programs administered by the Community Development Corporation of Utah are federally funded and are to be used to HELP income eligible first time home buyers purchase single-family homes. Funds can only be used for closing or down payment costs. There are a limited number of loans available each year and qualified applicants will receive their financial award on a first come, first serve basis.

For more information about this program, the targeted areas and the income limits click here.