Generally speaking, you’ll need to put down at least 3.5% when you purchase a home using an FHA loan. If you’re obtaining a conventional loan, you’ll need at least 5%. However, there are some creative ways to buy a home with no money down:
The most common way to pay less (or nothing at all!) at the settlement table is to secure a seller’s assist. A seller’s assist refers to the seller paying a portion of the buyer’s closing costs and is negotiated when the offer is presented. In fact, more than half of EveryHome buyers use a seller’s assist! If you’re interested in learning more, click here.
If you’re looking for a home in a semi-rural or rural suburb of Philadelphia, you may wish to consider a USDA loan. These types of loans are subsidized by the Department of Agriculture and offer mortgages for 0% down! Be sure to check this website to determine if your area qualifies. Much of northern Montgomery and Bucks counties are eligible, as well as western Chester County and Berks County.
If you or your spouse is a United States military veteran, be sure to consider a Veteran Affairs (VA) loan. Available for just 0% down, they offer tremendous assistance to our veterans and active-duty service men and women. Plus, private mortgage insurance isn’t required.
Plus, if you’re working with an EveryHome agent, you’ll be receiving “Cash @ Closing” — a portion of our commission that WE pay YOU at settlement!