Zero Down
A zero down loan is good when you don't have enough cash to pay your closing costs and make a down payment on the purchase of your home.
Zero down programs allow you to buy your home now, instead of waiting to save enough for a down payment.
There are options available for buying a home with zero down.
- Get one new loan at 100 percent loan-to-value (LTV). PMI is usually required, and the insurance charges may be tax deductible.
- VA and Rural Development loans allow for 100% financing.
PMI is an additional charge you pay if you make less than a 20 percent down payment. This insurance policy protects the lender in the event of a payment default or foreclosure, and the loan is not paid off in full. The PMI payment ranges from 0.19 percent for a fixed rate loan with a 15 percent down payment; up to 1.09 percent with zero down; and as high as 1.34 percent on a zero down variable rate.
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