ZERO, ZIP, ZILCH, NADA

That's how much your down payment could be!

With real estate prices on the rise, our Conventional Zero Down Payment program allows you to buy a home sooner - without taking months (or years) to save up a down payment.

Particularly among first-time home buyers, saving for down payment has been listed a the most common barrier to home ownership. Home prices are also increasing, which means waiting to save for a large down payment could make buying a home less affordable in the future.

Find out what you qualify for.

Check your Eligibility

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Will not affect your credit score.

Your family-owned LOCAL lender serving over 2,300 families mortgage needs since opening in 2019.

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All About Our Conventional Zero Down Loan

Buy a home sooner with no down payment needed
97% conventional first mortgage combined with a 3% second mortgage with no interest or payments
No property location restrictions

What is a Zero Down home loan?

Our zero down home loan program gives you the chance to purchase a home without having to make a traditional down payment. Saving for down payment can be challenging and delaying your home purchase while trying to save could price you out of the market. This is a conventional home loan underwritten to conforming guidelines with minor exceptions.

How does the Zero Down home loan work?

Our Conventional Zero Down home loan gives you a 97% first mortgage and a 3% second mortgage for a total of 100% financing. For example, if you purchase a $300,000 home under this program, you will receive a $291,000 first mortgage ($300,000 x 97%) and a $9,000 second mortgage ($300,000 x 3%).

The first mortgage is repayable on a 30-year fixed rate term. The first mortgage payment will include the principal and interest, private mortgage insurance and taxes and insurance for the property.

The second mortgage is repayable, however, there are no monthly payments required and there is no interest charged on the second mortgage portion of the loan. The balance of the second mortgage is repaid when you either refinance the first mortgage, sell your home or pay the first mortgage off in full.

Benefits of our Zero Down Home Loan Program

Buy a home sooner than expected
Interest Free 2nd Mortgage with no monthly payment requirements
620+ credit score may be eligible.
No geographic restrictions

Eligibility Requirements for our Conventional Zero Down Home Loan Program

Home must be owner occupied
First Time Home Buyer (you can’t have owned a home in the most recent 3 years)
620 qualifying credit score required
Qualifying income is 80% or less of the Area Median Income (see below)

How are the interest rates?

The rates for our Zero Down program are very competitive but a little higher than if you were making your own down payment. Expect to pay about .25% higher in interest rate for this product as compared to the rates you could expect if you were making at least a 3% down payment. Depending on your income level, you may qualify for our First Time Home Buyer Rate Discount Program.

Is mortgage insurance required?

Yes, these loans require monthly Private Mortgage Insurance (PMI). The PMI is included in the first mortgage payment.

Home Buyer Education

As a first-time home buyer, you will be required to complete a home buyer’s education course. Don’t worry, this is easy to complete and can be done online in about one hour.

Where can I determine the Area Median Income for my area?

Click Here to access Freddie Mac’s Income and Property Eligibility tool. Enter a property address to determine the income limits for your area.

80% of Median Income Limits for larger Metro Areas in our Licensed States

Memphis $67,200

Nashville $83,760

Knoxville $71,200

Atlanta $84,880

Denver $104,320

Miami $70,080

Tampa $73,600

Orlando $72,320

Jacksonville $78,400

What property types can be purchased with the Zero Down program?

1-unit single family residences
Condos (require full project approval)
Must be Primary Residence, no investment properties or second homes

If there is no down payment, do I need any money at closing?

Well, that depends. This program offers 100% financing between the first and second mortgage. However, this loan still has traditional closing costs which are charged to you at closing. Depending on your loan size, your area and the time of year, these costs will be about 2 to 5% of the sales price. However, the seller can pay your closing costs up to 3% of the sales price so it is possible to purchase a home with no money out of pocket.

Is it a good idea to buy a home with no down payment?

For several reasons, a down payment is always a good thing when it comes to purchasing a home. One, you typically can get a lower interest rate by making a larger down payment. Secondly, making a down payment is an investment in your home and equity is always a good thing. So, if you have a down payment saved, by all means you should invest that money into your home.

What are the risks of the Conventional No Down Payment loan?

The main risk of purchasing a home without down payment is the lack of equity. This is fine as long as home values are stable or increasing, but if home values decrease, this could leave you upside down in your home. Also, refinancing a home loan with little equity in your home can be challenging since lenders typically require at least 5% equity in your home for a conventional refinance.

How quickly can I close a loan?

This product follows our traditional loan process and can be closed in 21 calendar days or less. See our Fast Track Close program requirements.

Find Out if You Qualify for the Zero Down Home Loan