What is a zero-down loan? Loans that finance the full purchase price, and thus do not require a downpayment, are called "zero-down loans". Zero-down loans are also referred to as "100% loans". Loan programs that allow you to borrow 103% or higher of the purchase price in order to finance closing costs into the deal are also available.

Is a zero-down loan a good choice for me? Zero-down loans are a good choice for first-time homebuyers who have good credit and sufficient income, but who have not saved the 3% to 5% downpayment required by most loan programs. Zero-down loan programs allow first-time homebuyers to achieve homeownership sooner and start earning a higher return on their savings by building up equity in a home.

Zero-down loan programs that we offer include:

• VA. The VA loan program does not require a downpayment, allows an interested party to pay closing costs, and is usually the best zero-down program for eligible veterans and active-duty members of the armed forces.
• FHA. The FHA loan program requires a minimum 3% investment by the borrower toward the downpayment and closing costs, but the required investment can be funded by a grant from a downpayment assistance program.
• Rural Development. Guaranteed Rural Housing loans do not require a downpayment. And if the appraised value is higher than the sale price, then closing costs, prepaid expenses, and lender required repairs can be added to the loan amount up to the appraised value of the property.
• FMNA/FHLMC. Fannie and Freddie both offer 100% loan programs and 97% loan programs in which the downpayment can come from flexible sources.
• Nonconforming. Many nonconforming zero downpayment loan programs will allow you to borrow 103% or higher of the purchase price, allowing you to finance closing costs on top of the purchase price.

To qualify for a zero-down loan, borrowers must satisfy lender guidelines for income, assets, and credit. For more information on zero-down loan programs, contact Allied Home Mortgage.

To apply for a zero-down loan, fill out our short prequalification form, or submit an online application, or call us at 503-356-2241.

Allied Home Mortgage offers competitive rates, low fees, and superior service on hundreds of loan programs, including conventional, FHA, VA, and USDA Guaranteed Rural Housing. At the Hillsboro, Oregon branch we are licensed to originate home loans throughout Oregon and Washington. We specialize in financing real estate purchase transactions, including manufactured home land-home packages. We also offer rate and term refinances, cash-out refinances, home equity loans, and construction loans. We welcome applications from first-time homebuyers, borrowers with limited income and assets, and borrowers with damaged credit that have been turned down elsewhere. Click here for more information about us.

	Allied Home Mortgage Capital Corporation 111 SE 3rd Ave, Suite C Hillsboro, Oregon 97123 503-356-2241
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