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Is the Zero Down Payment Loan Ending this summer

I have seen some talk about the 729,000 limit on borrowing at zero down ending, is this true?  How will this affect the Metro DC region where a good single family home can easily hit that amount.

What will borrowers who don't have a good downpayment be able to afford?
  • June 03 2011 - Annandale
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Answers (2)

I agree with Wetdawgs, most no down loan programs have already died, USDA goes no where near 729K, and VA, although technically you might still be able to get there, requirements are tough.
Some lenders, including American Bank, offer a down payment matching grant, for every one dollar the buyer puts up, it gets matched by 4 additional dollars up to a maximum of 7500 total grant money. This can help with downpayment or closing costs.
Lenders and the Gov't both feel that 100% financing contributed to the market spike and subsequent shrinking, so they are not offering these loans any longer.
Jim, American Bank
  • June 04 2011
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Profile picture for wetdawgs
The only 0% down loans I'm aware of are the USDA rural development loan as well as VA loans.   

What are people to do without a good down payment?  Rent and save - the old fashioned way!
  • June 03 2011
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