The standard advice for anyone who wants to buy a home is to save up for a down payment first – and that you need to put down at least 20 percent of the purchase price. But if you’re like many people in Orem, Utah, coming up with that kind of cash isn’t a practical goal.
However, that doesn’t mean giving up on your dream of becoming a homeowner, as there are legitimate ways to buy a home with little or no money down in Utah. Here, the mortgage professionals at Intercap Lending explain the options.
Zero-Down VA Loans
The U.S. Department of Veterans Affairs has a zero-down mortgage program, and since interest rates on VA loans tend to be on the low side, it’s an attractive option. That said, the eligibility requirements are rather strict. Only certain individuals — veterans, active-duty service members, reservists, surviving spouses, military academy cadets and a few select others – qualify for this form of financing. Also, a good credit score is a must to get approved for a zero-down VA loan.
Zero-Down USDA Loans
Offered by the U.S. Department of Agriculture, zero-down USDA loans are an option for residents of Orem, Utah, who want to buy a home with no money down. However, USDA financing is only for those with low or moderate income – and, borrowers must choose a property in an eligible part of northern Utah. These areas are largely rural or non-urban, but a home in a region populated by less than 35,000 might meet the requirements for a zero-down USDA loan.
Down Payment Assistance Programs
For anyone who isn’t eligible for a VA loan or USDA financing, a down payment assistance (DPA) program could offer an easier path to homeownership. Going this route does require some cash, but the amount needed is significantly less. At the same time, the goal of most DPA programs is to help would-be homebuyers with low- to moderate-incomes – and that being so, not everyone is eligible. Also, borrowers may be required to meet certain criteria, like buying a home in a targeted Utah neighborhood.
Want to Buy a Home in Orem, Utah?
Maybe you qualify for a VA loan or USDA loan. Or perhaps you’d like to know more about down payment assistance programs. Any way it goes, if you’re looking to buy a home with little or no money down, the professional team at Intercap Lending would be happy to help. For information on zero-down mortgage programs and expert advice on how to become a homeowner without making a hefty down payment, contact our office in Orem, Utah, today.