South Bend Home Loan

Wednesday, July 25, 2012

Buying a Home with No Down Payment

Let’s face it – it can be hard to save money.  We’d like to think that all home buyers can set money aside for the down payment on a home purchase, but some people just can’t make that happen.  Does that mean they shouldn’t be allowed to buy a home, though? 

VA, USDA and IHCDA all say “Of Course Not!”.  Each of these entities has an option in place to let a person buy a home now, even if they don’t have savings set aside for a down payment.  Here are the highlights of what they offer:

·        VA – VA is a term used to reference loans guaranteed by the Department of Veterans Affairs.  If you or your spouse is a Veteran, this can be an excellent option.  It offers a great interest rate, no monthly private mortgage insurance (PMI), and no down payment.

·        USDA – USDA stands for the United States Department of Agriculture.  Among other things, the USDA guarantees mortgage loans made in rural areas.  That guarantee allows for 100% financing on these homes.  The interest rates are great too, and the PMI is cheap.  To see if a property is USDA eligible, just enter the address on USDA’s website:

·        IHCDA – my favorite option is the Next Home program by IHCDA.  IHCDA stands for the Indiana Housing and Community Development Authority, which is a government branch that focuses on promoting home ownership in Indiana.  Their premier program, the Next Home loan, provides 3.5% in down payment assistance to the qualified buyer using FHA financing and 3% to the buyer using Conventional financing.  That contribution covers the entire down payment needed with both loans. 
So what is all this telling us?  It’s telling us that HOMEBUYERS HAVE OPTIONS.  Just because a buyer doesn’t have money in the bank right now, it doesn’t mean they can’t buy a home.  They just need to be working with a lender who can explore all the options out there and find one that will work for them.

To learn more about any of these options, feel free to drop me an email or give me a call (, 574-707-0196.  I'd be happy to help you take the exciting step into home ownership. 

Lori Hiscock is a Sr. Loan Officer at Ruoff Home Mortgage‘s South Bend office.  One of Michiana’s top mortgage loan officers, Lori started her lending career in 1995 after obtaining her bachelor’s degree in Finance from Western Michigan University.  You can connect with Lori Hiscock or apply online here. NMLS#404320.
Ruoff Mortgage Company, Inc. is an Indiana corporation licensed by the Indiana Department of Financial Institutions (DFI) and operates with the following licenses:

Indiana-DFI First Lien Mortgage Lending License #10994;
IL Residential Mortgage Licensee #MB.6760734;
Michigan 1st Mortgage Broker/Lender License #FL0017496.
Ohio Mortgage Broker Act License #MBMB.850220.000

The Florida Office of Financial Regulation License #MLD1182