0% Down Purchase
Our exclusive 0% Down Purchase is a down payment assistance program that allows borrowers to receive a 3% loan up to $15,000. Borrowers will have no required monthly payment on the second lien and second lien does not accrue interest. The second lien is due in full as a balloon payment upon refinance of the 1st lien, a payoff or the final payment of the amortization schedule of the 1st lien.
What are the benefits of a 0% Down Purchase Loan?
Allows us to help more borrowers get into a home quicker without a down payment. Allows borrowers to use additional funds that they would need for the down payment to use for home repairs or apply to their emergency savings account.
This 0% Down Purchase loan follows the Home Possible income guidelines for 2024 which is currently $91,760 in Chester, Delaware, Montgomery, Bucks, and Philadelphia counties. Another advantage is there are no loan level price adjustments for first time home buyers.
What are the 0% Down Purchase Loan parameters?
- 30 year fixed primary residence purchases only
- 1 Unit single-family, PUDs, and condos
- No manufactured homes
- Down payment can cover the less of 3% or $15,000 of the down payment
- Second lien is due in full as a balloon payment upon refinance or final payment of the mortgage.
- No required monthly payment on second lien
- Second lien doesn’t accrue interest
- Down payment assistance can’t be used for closing costs
Minimum Credit Score
- Borrower must have a minimum of a 620 credit score. Borrower must receive an approved eligible through LPA findings.
- Borrowers debt to income ratio can’t exceed 50%
- Homeownership Education is required through a HUD approved education provider
0% Down Purchase Loan Calculation Example
Sales price is $300,000 3% of $300,000 = $9,000
Second lien = $9,000
