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Suburb Houses
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.

No cost or obligation. 

Will not affect your credit score.

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

Below market interest rates combined with five star service.
All About Our Conventional Zero Down Loan
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  • Buy a home sooner with no down payment needed

  • 97% conventional first mortgage combined with a 3% second mortgage with no interest or payments

  • Up to $500,000 sale price with zero down payment

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 Programs

  • Buy a home sooner than expected

  • Interest Free 2nd Mortgage with no monthly payment requirements

  • No income limits for buyers that have 700+ credit scores

  • No geographic restrictions



What is the maximum loan amount for the Zero Down home loan product?


You can borrow up to the conforming loan limits on the first mortgage, which is currently $766,550.

The provided second mortgage loan limit is $15,000 -  so to purchase a home with $0 down, the sales price would have to be $500,000 or less. If making a small down payment, a larger sales price could be possible.

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.

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)

  • 700 credit score required if your qualifying income is over 80% of the Area Median Income

  • 620 credit score required if your qualifying income is less than 80% of the Area Median Income

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. If your credit score is above 700, your income can exceed these limits. However, if your credit score is 620-699, your qualifying income will need to be at or below 80% of the Area Median Income.

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. These programs offer 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 follow 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

  • Complete a short form online - takes less than 5 minutes.

  • Get qualified for the Zero Down Home Loan.

  • Start shopping for your new home.

Conventional  97% 30 Year Fixed Rate


Interest Rate



Effective 6/12/24, 12:00:00PM CDT

Interest Rate Assumptions (+)

3% Second Mortgage

with No Payments


Interest Rate



Effective 6/12/24, 12:00:00PM CDT

Interest Rate Assumptions (+)

Learn if a Zero Down Home Loan is Right for You

No cost or obligation. 

Will not affect your credit score.

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