USDA financing
The United States Department of Agriculture also covers loans with no down payment. The catch is that you must purchase a rural home and meet certain income standards. Consider what is essential to you in a home and a location. For example, a USDA loan is probably not for you if you want something walkable in a more urban setting.
You may be eligible if you have a credit score of 640 or more, while you may qualify with a lower score.
You fulfill the income eligibility standards in your area.
The house you’re looking to buy is in a USDA-designated rural area.
Program for HomePath Ready Buyers
Fannie Mae’s HomePath Ready BuyerTM program is designed for first-time homebuyers and provides borrowers with closing cost assistance of up to 3% of the home’s purchase price.
If you are a first-time homebuyer, you may be eligible.
You have finished the HomePath Ready Buyer education course.
You purchase a Fannie Mae-owned, foreclosed home via HomePath.com.
Dollar Homes is a HUD program.
The HUD Dollar Homes program allows low- to moderate-income purchasers to buy a repossessed property for $1 plus closing expenses. HUD operates the program in collaboration with local governments and non-profit organizations.
You might be eligible if you can find a local housing agency that participates in the program.
On the HUD Homestore website, you locate a suitable house.
You have the finance to cover the expenditures of house renovation.
Grants and programs for first-time homebuyers in your area
State and municipal governments offer a variety of first-time homebuyer incentives. For more information, contact your county’s housing authority and your state’s housing finance department. HUD’s directory of state-by-state homebuying programs is another useful resource.
Pay close attention to the program’s conditions, including income limits, strict DTI ratio, and credit score guidelines. Some programs may also compel you to repay the help if you only stay in the home for a short time. Another factor to consider is tax recapture. This means that if you sell your property prematurely and earn a profit, some of the proceeds may be liable to taxes to compensate for the home purchase help you received initially.