100% Financing and Zero Down Payment Loans for First-Time Home buyers

Many people do not realize that you can still buy a home with 100% financing (also known as a zero down payment loan)!

There are currently two mortgage programs which allow home purchases with 100% financing or 0% down payment. Those options are:

  1. Veterans Loan (VA Loan)
  2. USDA Rural Development Loan.

Both loans have certain restrictions and not everyone will qualify. Some of the highlights of each loan type are below.

Treadstone Funding also offers other forms of down payment assistance for those looking for alternative options. Down payment assistance programs come in many forms, and can bring your down payment close to 0% down and/or reduce your closing costs.


100% Financing with VA Home Mortgage Loan

Who it’s For: Veterans, active military, and their spouses.

How it works: Veterans who can provide a Certificate of Eligibility (also known as a CoE, which our Loan Officers can help obtain) and qualify for a mortgage may be eligible! To start, apply for a loan or get in contact with a Loan Officer.

Which Homes: VA loans can be used for a variety of homes with no location restriction. There is a frequently-changing maximum loan amount, which can be found with more VA home loan information.

How to start? Tap the link below!


100% Financing with USDA Rural Development “RD” Loan

Who it’s for: People who wish to buy a house in a rural area, who intend to use the home as their primary residence.

How it works: Both the borrower and the property must meet the USDA’s qualification requirements, including property condition and location, as well as credit score & income.

Which homes: Typically, these areas are outside the boundaries of major cities. Some popular areas in Michigan include Rockford, Lowell, Cedar Springs, Middleville, and Sparta, but you can search specific addresses and areas on the USDA’s website.

How to start? Tap the link below!


Loans with a Low Down Payment for First-Time Home buyers

If you’re a first-time home buyer, but you’re buying in a city and aren’t a veteran or active military service member, other mortgage options are available with low down payment options. Some of these options are available for first-time home buyers, while some are available for anyone who qualifies!

Conventional loans offer a down payment as little as 3% down, while FHA loans in Michigan offer 3.5% down.

Either FHA or conventional loans may have the ability to offer down payment assistance to buyers who qualify. These can be grants, interest-free second loans, standard second mortgages, and more. With the addition of down payment assistance on your home loan, you may get your down payment well below 3%.

Mortgages Rates for VA Loans and USDA Loans

Mortgage rates vary between loan programs and down payment amounts! Below is a quick glance at interest rate trends in Grand Rapids between various home loan programs in Michigan.

*Displayed interest rates represent industry trends, and do not represent rates offered by Treadstone Funding or Neighborhood Loans. For an accurate, up-to-date quote on mortgage rates, please talk to a licensed Loan Officer.