It's not all that easy to save for a down payment for a home. The cost of living has risen a lot over the years and with everything else that must be paid, you might find it hard to save for a down payment for a new home. It is possible to still buy a home without a down payment and get a loan for the mortgage too. You just have to know where to look for the right loan for you.
Low or No Downpayment Options for Loans
One of the best choices you have for a low downpayment loan is an FHA or Federal Housing Administration loan. This is one of the most popular options because it has some of the most lenient requirements you must have in order to receive the loan. While you do need a down payment it's typically very small compared to other options and the entire down payment can be in the form of a gift from a relative or one of the approved non-profit groups they list.
If you are a US citizen or permanent resident you are eligible to apply for an FHA loan. Another good thing about this type of loan is, you don't have to be a first-time buyer to apply like some others. You also do not need a perfect or even close to it credit score and there are some lenders who will loan to those whose credit is well below what other lenders would approve, so don't be deterred, check if you still qualify.
Another loan you can try for and one that carries a no down payment option is the VA Home Loan. If you are currently serving in the military or have served in the past, you may qualify. This loan does not require you to have great credit and the entire loan is financed by the lender so no down payment is required on your part.
Other Low Downpayment Options
You can also apply for a USDA Home Purchase loan – also known as the Rural Development or Rural Housing Loan. This loan doesn't require you to put a down payment down but you do need a slightly better credit score than the previous two options. The lenders will provide the entire financing and it's not restricted to first time home buyers. You will need to carry mortgage insurance which is typically included with the loan payment.
Conventional 97 is a Fannie Mae backed option with a very low down payment requirement. The loan has few restrictions and the down payment may come to you as a financial gift or another approved financial source. There are no income limits to being approved for the loan and anyone, not just first-time buyers can apply. You will need good credit to apply for this loan.