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What are the Zero Down Payment Loans?

Zero down payment loans provide 100% financing to both first-time and re-purchase buyers alike. VA loans and USDA loans require no down payment.

VA Home Loan

What is a VA Loan?

VA loans offer benefits for eligible military veterans, service members and spouses who want to buy a home. For example, eligible buyers can purchase a home with zero down payment and no private mortgage insurance. In addition, VA Home loans rates are lower as compared to conventional loans.

The Department of Veterans Affairs guarantees VA Loans. Consequently, ensuring the lender against loss should the borrower stop making payments.  As a result, lenders make loans with zero down payment without fear of loss.  In addition, the Department of Veteran’s affairs sets the guidelines for this VA Home Loan.

Under circumstances that buyers do not qualify for a VA Loan, instead, an FHA or conventional low-down-payment loan may be the answer.

What are the benefits?

  • Zero down payment
  • Lower rates than conventional financing
  • Seller paid closing costs allowed up to 4% of the purchase price
  • VA funding fee financed into the loan amount
  • Disabled eligible veterans may waive the funding fee


What are VA Loan Requirements?

Eligible active duty service members, National Guard, and reservists. Additionally, spouses of military members who died while on active duty or service-oriented disability are eligible.

  • Minimum Credit score minimum of 620.
  • Primary residence only


How to Apply for a VA Loan?

VA loan process takes about 30 days to close once you apply. For the purpose of faster closings, buyers may apply in advance before you go under a contract.

  • Obtain your certificate of Eligibility, COE. initially through the VA or through CharterStone Mortgage.
  • Gather all your income and asset documents.
  • On-Line applications are available.
  • Call us to walk you through the process


USDA Loans

What are USDA Loans?

The U.S Department of Agriculture backs the Rural Housing Guaranteed loan. Specifically, USDA loans are available to home buyers with low-to-average income. Moreover, they offer zero down payment loans and low monthly mortgage insurance premiums.  In addition, offer lower than market interest rates too.  However, USDA loans are limited to rural geographic areas.

Under circumstances that buyers do not qualify for USDA loans to consider FHA and low down payment conventional loans.

 How do I know if my area is eligible?

U.S. Department of Agriculture website will list the eligible areas. In addition,  Charterstone Mortgage will help determine if you are eligible.

What are the benefits of USDA Loan?

  • Zero down payment loans
  • No purchase limits
  • Gift funds allowed
  • Seller Credits towards closing costs allowed
  • 1% Guarantee fee may be financed in the loan amount.


What are the requirements for a USDA Loan?

  • U.S. Citizen or permanent resident
  • Repeat homeowner acceptable
  • Minimum credit score of 620
  • Income limits per geographic area
  • Primary residence only
  • Zero Down Payment Loans
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