Everyone loves a low or no money down mortgage, but many people suspect it’s a rare unicorn. While a true no money down mortgage is not common for most people, MOST mortgages can be financed with a very low down payment thanks to Private Mortgage Insurance. Guild Mortgage stays on the leading edge of the newest government-backed programs to ensure you don’t miss an opportunity if you’re eligible for a low or no money down mortgage.
There are many ways to minimize the cash you need to own your own home, from low (to no) down payments, to loan programs where your closing costs are supplied by the seller OR added to the life of your loan.
Here’s an overview of the 7 current most popular low-to-no money down programs:
- Guild’s 1% Down Payment Advantage – You can start your homebuying journey with a 1% down payment and a 2%* Guild down payment assistance to start building equity–on us.
- Guild’s 3-2-1 Home Plus Program – First-time buyers with low to moderate income put 3% down, we give you a $2,000 eGift Card to The Home Depot®**, plus $1,000 to $2,500 toward closing***
- USDA – No money down if you meet income requirements and your property is located in a designated rural area (we can help you identify this.)
- VA – No money down for Veterans who qualify.
- MSHDA – As low as 1% contribution required if income guidelines are met…3.5% can be a gift from family
- FHA – As low as 3.5% with generous guidelines on less-than-perfect credit
- Fannie Mae or Freddie Mac – Many people think Conventional mortgages require 20% down but in actual fact if you have a strong credit rating and a debt-load ratio that can handle the payment, you don’t need more than 3% down to qualify.
*Guild Mortgage to cover 2% of the required minimum down payment amount in the form of a non-repayable grant with a maximum grant amount of $5,000. Changes to the loan parameters, including but not limited to the loan amount, owner-occupancy status, loan to value and other factors may render the borrower ineligible for the program. Eligibility is subject to the program guidelines. The grant may only be used for the borrower’s cash investment in accordance with the program guidelines. Must lock rate on or after 6/12/2023. Not available with any other discounts or promotions. Offer cannot be retroactively applied to previously closed loans or loans that have a locked rate.
**Guild Mortgage is not affiliated with The Home Depot®. The Home Depot® is not a sponsor of this promotion. The Home Depot® is a registered trademark of Home Depot Product Authority, LLC. All rights reserved.
***Freddie Mac BorrowSmartTM down payment/closing cost assistance amounts of $1,000 or $1,250 based on Area Median Income and other eligibility criteria. Very low-income customers receive $2,500 based on Area Median Income and other eligibility criteria. $1,000 assistance applies to manufactured homes