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Can You Purchase a Home with No Down Payment?

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It is possible to have no down payment on the home you want to buy. You will either have to qualify for a government-backed loan that requires no down payment, or a community assistance program. You may also be able to use a second mortgage loan from the seller instead of a down payment.

Government Loans and Community Programs

The Rural Development Housing, or RD, loan is available for homeowners. There is no down payment if the home is in a rural area, and you meet certain loan requirements. Ask your lender for the details on this program if you think you qualify.

There are also many community programs available that provide grants for down payment assistance. The grant will not have to be paid back. Most grants, however, are limited with respect to income and sales prices.

Seller Second Mortgage

If you are able to find a seller willing to give you a second mortgage at the time of your purchase, you can avoid having to put down any money. The loan will need to be closed at the same time as your first mortgage, and your lender will have to approve of the second mortgage payment and the overall loan-to-value ratio.