There are legitimate zero-down programs for first-time homebuyers that have been around for many years. Those never were, nor ever will be, poorly thought out and/or designed to put people in homes they might not be able to afford. These programs are backed either by federal or state agencies and they work!
One of the best programs for first-time buyers are through CalHFA (California Housing Finance Agency). They can provide both a down payment loan for as much as 5% of the purchase price and, if needed, a 3.5% closing cost loan. The interest rate for the 5% program is 3% calculated as simple interest (a $20,000 loan accrues interest at a fixed amount of $600 per year) and, perhaps the best feature, no payments are required until either the home is sold or refinanced!
The 3.5% closing cost loan is the same except, there is an option with zero interest! For a $14,000 loan, for example, the payoff anytime in the future would be $14,000!
There are requirements for these programs including an eight hour homebuyer education program that can be done on-line and there are maximum income limits based on the number of family members but those limits are fairly high compared to similar programs.
The advantages of homeownership versus renting are very significant and you may be eligible to become a homeowner with absolutely no out-of-pocket initial cost. If you would like to learn more, I am happy to provide information for you.
Joe Adamson (408) 975-2400 x123 NMLS #234559 BRE #01090504
Mortgage Magic NMLS #331340 BRE #01104088
