No Money Down

FHA Zero Down Mortgage

With our exciting new FHA zero down loan program, families can easily get into the home of their dreams with no down payment.

How It Works

3 Important Things to Know

Down Payment Assistance (DPA)

Choose between 3.5% or 5% in down payment assistance. If you choose 5%, you can use 1.5% of the down payment assistance towards your closing costs.

Down Payment Assistance (DPA) Repayment

You can choose between a repayable or forgivable second lien for down payment assistance. The repayable option will come with a lower interest rate.

Available to All Buyers

A borrower does not need to be a first-time homebuyer to qualify for this special FHA zero down loan program.

Program Guidelines

Here are the primary guidelines for our zero down FHA loan program.

Primary Occupancy

This program is only available for primary residences only. No investment properties.

Property Types

Single family residences, duplexes, condos, and manufactured homes are all allowed with this loan program.

Credit Score

All borrowers must have a minimum FIFCO Score of 600 to qualify for this loan program.

Income Restrictions

There are no income restrictions for this loan program.

Seller Concessions

Seller are still allowed to contribute towards your closing costs with this loan program.

Program FAQs

Answers to commonly asked questions about our FHA zero down loan progam.

What down payment assistance options do I have?

The minimum down payment for a FHA loan is 3.5% of the purchase price of the home, and you have the option to choose either 3.5% in down payment assistance or 5% in down payment assitance. If you select 5% in down payment assistance, you will have an extra 1.5% leftover to use towards your closing costs.

Will the down payment assistance be a second lien?

Yes, you will have a second lien equal to the down payment assistance you receive. The first lien will be a standard 96.5% loan-to-value FHA mortgage, and the second lien will either be 3.5% or 5% of the purchase price of your home, depending on the down payment assistance amount you select.

Why would I choose a repayable second lien?

You have the option to choose either a repayable or non-repayble second lien. If you choose a non-repayable second lien, the second lien does not have to be repaid and will drop off after a certain number of on-time payments (typically 36). However, you will have a higher interest rate with the non-repayable second lien option. Your loan officer can run pricing scenarios to help you determine what option is best for you. The repayable second lien will typically be amoritorized over 10 years.

Are gift funds allowed?

Yes, gift funds are allowed for this zero down FHA loan program. While the program will cover your down payment, you could still have closing costs to cover depending on your loan structure and the specific down payment assistance program you select. Some, or even all, of your closing costs can be covered by gift funds from a relative, close friend with documented relationship, employer, or charitable organization. While not considered gift funds necessarily, sellers can also contribute towards your closing costs if you work this into your purchase agreement.

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