No Downpayment? No problem

Written by Posted On Wednesday, 05 April 2017 10:48

Often we see headlines like the one above and think it's a gimmick. We dismiss the idea that someone would actually be able to buy a home unless they are able to put the traditional 20% down. The idea that a large down-payment is needed is a fairly common misconception. I have set down at the closing table with my buyers that did not bring a single dollar to close on their home. How is this possible? There are actually a few ways to buy a home without bringing money for a down-payment.

The first thing that comes to my mind when people ask me how they can buy a home with zero down is to tell them about a Rural Development loan. What is a Rural Development loan? It covers eligible suburban and rural home buyers (meaning: it is not available for all homes), but covers a wide range of areas including Bryant, Malvern, Alexander and many other areas. It's a 100%, no-money down mortgage loan backed by the U.S. Department of Agriculture (USDA). If you want to know more about the loan then this is a great place to start or if you are wondering if an address would qualify for a RD loan then you can check the address here (click "Single Family Housing Guarantee" and then click "Property Eligibility")

Another loan that has 100% Financing is a VA loan. This type of loan is available via the Department of Veterans Affairs for veterans of the U.S. Armed Services. Obviously, this loan is not available to all buyers, but is very beneficial to those that qualify. If you have obtained a VA loan previously it is reusable so you may qualify for that type of loan again.

Do not be discouraged if you get approved for a loan that requires a down-payment, there are still options available for you. In Arkansaswe have the Arkansas Dream Down-Payment Initiative (ADDI) which is just another example of how you can own a home with zero down. With ADDI, qualifying Arkansans can be provided up to 6% of the purchase price of their home, not to exceed $10,000.  If you stay in the home for five years then you never have to pay anything for the money you were given. It's forgiven! If you want to want to learn more about ADDI then visit here

If you would like to learn more about buying or selling a home then I would love to talk to you!

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Kayla Ferris

Kayla is a REALTOR at the RE/MAX Elite office in Little Rock, AR. She has owned her own antique business for many years and gradually moved her business over to real estate. She is happily married and raising six children with her husband. Kayla primarily works in residential real estate and specializes in first time home buyers and sellers on the brink of foreclosure. Kayla purchased her first home in 2006 and was reluctant to foreclose on that home during the 07-08 housing market crash. She understands that excitment when buying a first home may sometimes cloud judgement to potential issues and the struggles to sell a home that you cannot afford.

"I feel that it is most important for me to EARN your trust. If you are looking to buy or sell real estate then let's sit down and talk specifics. After I understand the things that are important to you then I will provide you with information to help you make an informed decision. It would be an honor if you chose me to be your go-to resource in real estate. I can be reached at 501.502.0799"


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