By far, this no down payment mortgage loan has become very popular with first time home buyers this year.  Specifically, Wisconsin has many areas in which the property you are looking to purchase will be eligible for this program.  Wisconsin mainly consists of rural areas.

Here is a direct link to a map that shows the areas of Wisconsin that are eligible for a rural housing loan.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

The rural housing loan does apply throughout the nation, but you have to find the site that pertain to your state.  Each state is going to have different areas that allow eligibility.

To learn more about the details of the Rural Housing Loan, go to no down payment mortgage loans in Wisconsin.

Here are the three options you have when looking for a true no down payment mortgage loan. I’ve also laid out some details of each program, so you can get an idea of what they are all about.

1. VA (Veterans Affairs) Mortgage Loan - Whether you or your spouse are currently in active duty or a military veteran, you can be eligible to obtain a VA mortgage loan. No down payment is required with this loan program. A VA loan has many benefits for military personal, that is should be taken advantage of. Here are the list of benefits that come with a VA mortgage loan…

- No down payment.
- Less of a PMI (private mortgage payment) payment.
- Favorable and secure 30 year fixed interest rates.
- No minimum credit score to qualify. Even if you have bad credit, a VA loan is approved based on your ability to show you can afford the mortgage payments.

You have two ways to be approved:

1. Approval through an automated underwriting engine.
2. A manual underwrite. Sometimes, the automated engine doesn’t approve your application, but that’s OK. It still allows your application to be underwritten manually by an underwriter. Basically, if you can show ability to pay the mortgage with good employment history, you will most likely be approved.

You may be able to obtain a VA loan multiple times. A form called the, Certificate of Eligibility, is required when applying for a VA loan and this determines whether or not you have enough “eligibility” left to qualify for another VA loan. Sometimes, a borrower doesn’t use all of his/her eligibility, which can be used again for a future purchase on a new home.

2. Rural Housing Mortgage Loan - If you find a home in a rural area and your adjusted annual gross income doesn’t exceed the moderate income limits for the area, you can qualify for a rural housing mortgage loan. No down payment is required with this loan program. A rural mortgage loan has many benefits for a borrower that is looking to purchase a home in a rural area. Here are the list of benefits that come with a rural mortgage loan…

- No down payment.
- No PMI. (private mortgage insurance)
- Favorable and secure 30 year fixed interest rates.
- Seller can pay up to 6% of the purchase price, to the buyer, for closing costs and prepaids. This allows the buyer to truly not have to bring money to closing, since there is no down payment.

You may finance up to 102% of the appraised value or purchase price, whichever is lower. The 2% is meant to finance the closing costs and prepaid items like the escrow account, so you truly do not have to bring money to closing.

3. FHA Mortgage Loan With A Down Payment Assistance Program - If the seller agrees to participate in a down payment assistance program, the buyer can use these funds towards his 3% down payment when applying for a FHA loan. This is how you can truly do a no down payment FHA mortgage loan. A down payment assistance program allows the seller to gift 3% of the purchase price to a 3rd party service, which in turn the buyer can use the 3rd party service and it’s funds for the down payment. Here are the list of benefits that come with a FHA loan…

- No down payment, when using a down payment assistance program.
- Less of a PMI (private mortgage insurance) payment.
- Favorable and secure 30 year fixed interest rates.
- No minimum credit score to qualify. Even if you have bad credit, a FHA loan is approved based on your ability to show you can afford the mortgage payments.

You have two ways to be approved:

1. Approval through an automated underwriting engine.
2. A manual underwrite. Sometimes, the automated engine doesn’t approve your application, but that’s OK. It still allows your application to be underwritten manually by an underwriter. Basically, if you can show ability to pay the mortgage with good employment history, you will most likely be approved.

These are the only 3 options that are available in this current lending environment. Fortunately, there are no down payment options available and I’m glad to say I specialize in working with first time home buyers to help them obtain these types of mortgage programs.

I wanted to take a moment to let everyone know I have officially launched my own personal website. Feel free to take a moment to look around, since I have loads of things that could help you. From mortgage calculators that show break even points when looking to refinancing, a rent vs. own calculator, to partners I highly recommend when it comes to buying or selling a home, etc.

Don’t be shy…pass it along to others that are interested in mortgage financing or need to “run some numbers”!

Here it is: www.homeloanwisconsin.com

Enjoy!

Looking to refinance your Wisconsin home loan or purchase a new home in Wisconsin???

There are still plenty of Wisconsin mortgage loans available. I personally have read many articles about how lenders are tightening up their guidelines and it is becoming much more difficult to finance your mortgage.

No need to worry, because I still have lenders that approve Wisconsin mortgage loans to 100% financing on a purchase and refinance. You can even have a credit scores as low as a 600!

A lot of times people just believe what they read from media sources only, but what they need to do is check with a Senior Loan Officer, like myself, to make sure what can and cannot be done. Many times the media may have only done their research with states only on the west coast, but those guidelines can be different for a Wisconsin mortgage.

If you are still looking to refinance into a lower rate, there is still time.  Interest rates are still at historic levels and I would be happy to evaluate your situation. I’m honest right from the start and don’t want to waste your time if it is something I cannot help with. Look to me as an advisor, not just an order taker!

Read up on when you should refinance your mortgage for more advice about refinancing.