$0 Down Government Home Loan Info

Government subsidized home loans are loans insured or guaranteed by the government and funded by institutional investors. These loans are designed to help create economic growth and stability.

The advantages these loans offer include: easy loan approval; low monthly payments with low fixed interest rates; and $0 down, $100 down, or low down payment plans. Almost any kind of real estate can be purchased using these loans.

Employment and income will be verified prior to loan approval. Recent pay stubs, monthly bills, bank statements, no recent history of late payments and W2's will be requested. A steady income and a good credit rating are mandatory. Additionally, borrowers are required to agree to live in the home they're purchasing.

The main types are VA Loan, FHA Loan and USDA Loan.

Financing a $0 down home loan through the Veterans Administration VA Loan is an attractive financing option for those who have served in the military (and their surviving spouses). VA home loan info can be obtained from any regional VA HLC office. Each VA loan is underwritten and monitored by VA regional loan centers located in Atlanta, Cleveland, Denver, Honolulu, Houston, Manchester, Phoenix, Roanoke, St. Paul, St. Petersburg and Winston/Salem. Applicants will be required to prove their eligibility before completing a VA home loan application. Applicants must have an honorable discharge and must have served at least 90 days during wartime or 181 days during peacetime. Applicants can become eligible after six years of service in the National Guard or Reserves or if deployed. A certificate of eligibility will be issued for a VA loan when all requirements have been met.

Applicants who have not served in the military may also qualify for other $0 Down Government Home Loans. The USDA is a $0 down home loan like the VA Loan but open to all US citizens. The USDA loan restricted to rural areas and low income borrowers.

Federal Housing Administration (FHA) home loan programs offer the best opportunities for future home owners to get home mortgages with as little as $100. The standard FHA requires 3.5% down on home purchases however; there are "free money" government grants, local and private borrower incentive programs, and closing cost assistance programs. A new one percent down gift program is available in eligible states. This program allows qualified borrowers to receive 2.5% of the home price to be used for down payments and closing costs. This money doesn't have to be paid back. The 1% can be a gift, grant or any FHA permitted source. Grant money, available in many states, can be another good source of free money to consider when financing a home. If you're interested in pursuing a USDA, FHA or VA loan, visit your regional VA HLC for your government subsidized home loan application.


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Philip Georgiades is the chief loan adviser for VA Home Loan Centers. In response to the economy, VA Home Loan Centers will originate every type of government subsidized mortgage regardless of prior military service. For a VA HLC loan application, visit => http://www.vahomeloancenters.org