Down Payment Assistance Programs and Zero-Down Mortgages
Down payment assistance and zero-down mortgages that have been around for years may offer interesting opportunities to owners looking to sell their properties in a shifting real estate market. Unfortunately, those involved in their use are often unfamiliar with how the programs work or may have had a bad experience with one, so they may discourage their use or the acceptance of offers that include them. As a result, home buyers and sellers rarely hear about the programs, how they work, and offers from highly qualified borrowers who have properly disclosed their use are often deemed unattractive. Please read on to learn about some of the zero-down mortgages available here in Gwinnett County that can attract home buyers with up to $10,000 in down payment assistance and help get a property sold.
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Down Payment Assistance Programs and Zero-Down Mortgages
Zero down mortgages may be available as 100% financing to
credit-eligible borrowers in certain professions for the purchase of certain
properties while down payment assistance programs are typically offered as an
interest and monthly payment-free second mortgage to first-time home buyers, borrowers who have not been on title to a property over the
previous three years.
100% Financing as Zero Down Mortgages in Gwinnett County
These 100% financing mortgage options usually require no
down payment.
HUD-owned Homes
Home buyers approved for an FHA Mortgage may be able to use
100% financing to buy a HUD-owned single-family home for owner-occupancy priced
up to $592,250 anywhere in Gwinnett County. Please be mindful, however, that any dollar amount that the borrower bids over the list price, perhaps to win acceptance, will be required of them at settlement.
VA Loans
Mortgages may be available to members of the armed forces,
veterans, and some spouses for use toward the purchase of any home in Gwinnett
County that is currently acceptable for owner-occupancy.
Doctor Loans
One known doctor's program offers 100% financing to borrowers with middle credit scores at or above 720 on loans up to $900,000. Even residents and interns can borrow up $726,200.
Other Conventional
At least one well-known, lender offers non-VA 100% financing to members of the armed forces, veterans, and some spouses for the purchase of homes for sale in Gwinnett County being purchased for owner-occupancy.
USDA Loans
Properties in many "rural" areas served by the Metro Atlanta television stations qualify for 100% financing through the USDA. But few (if any) properties in Gwinnett County are in areas that are designated rural by the agency at this time.
A few Down Payment Assistance Programs in Gwinnett County
Some Gwinnett County Mortgage Lenders offer down payment assistance to FHA borrowers with incomes at or below 80% of the area median toward the purchase of homes priced up to $350,000.
First-Time Home Buyer Loans
Down payment assistance is available through the federal
government, the State of Georgia, and Gwinnett County which helps the first-time
home buyer with their down payment for and closing costs on qualifying homes for sale in Gwinnett County being purchased for owner-occupancy.
Affordable Housing Advocacy Programs
Another program that promotes, creates, and preserves
mixed-income communities is occasionally available through certain lenders for
use with certain properties when they become available in Gwinnett County.
Frequently Asked Questions about Zero Down Mortgages
What are credit and income-eligible borrowers?
Borrowers with a middle credit score of at least 640 and a
back-end debt-to-income ratio of around 43 may be considered credit eligible
for down payment assistance, while the lender’s standards determine eligibility
for other zero-down programs. The income levels permitted for these down
payment assistance programs are quite generous and are based on the
number of persons in the household.
Please call for details.
What types of properties may be purchased using down payment assistance programs?
Eligible properties and their prices vary by program, but
most allow for the purchase of fully inhabitable and safe single-family detached homes, attached homes
such as townhouses, and some even allow for the purchase of duplexes or quads, all
provided that the borrower occupies at least one of the units.
What additional funds should be available when using one of these programs?
The borrower should plan to incur expenses outside of
closing that are not included in these zero-down mortgages, such as the earnest money deposit, fees for an appraisal, and home inspections. Additional funds should also be available that guard the transaction against any unexpected expenses. Please call to learn about a few past scenarios.
Does the borrower have to be an officer, teacher, or nurse to get the
higher amount?
No, administrative assistants, custodians, and about anyone paid
by law enforcement, a school, a healthcare facility, or the military should be
able to qualify for the higher amount of down payment assistance.
How does a zero-down mortgage help a Gwinnett County Property Owner sell faster?
Down payment assistance programs can give a property an edge over others and attract more qualified buyers by making their mortgage payments affordable. By promoting a willingness to consider offers that use these programs, the closing costs contributions that sellers are often asked to fund can then go toward an interest rate buy down that brings monthly payments within the budgets of more buyers. Managed carefully, offers that disclose the use of down payment assistance can close in a timely manner with few frustrations
while also providing some level of peace that the property will continue being maintained long after the seller's departure.
Wrapping Up Down Payment Assistance and Zero Down Mortgages
The current Gwinnett County Real Estate Market may be ideal
for borrowers who need down payment assistance and for sellers who need more
well-qualified traffic touring their homes for sale. Properties are available all around Gwinnett County that qualify for these programs and buyers can use them to meet the down
payment requirement, win bidding wars, or save on the purchase of their home.
