Don’t have 20% saved up for your mortgage down payment?  No problem!

If you are in the market for a new home but don’t have the standard 20% down payment for your your mortgage saved up, you can still buy a home!

There are other mortgage options that require little or no money down.  The Lawhead Team would like to share some mortgages that work for those with little or no money saved.

Mortgages with smaller down payments have become more common and some borrowers can now even be eligible for no down payment loans.  The following are four mortgages that individuals can qualify for with little or no money down.

FHA Loan – The Federal Housing Administration offers a low down payment loan of 3.5 percent available to most people.  Unlike the other loans listed below, this loan is not restricted to limited groups of buyers.

Today, about 30 percent of all home loan borrowers get FHA-insured loans which is up from 3 percent during the housing boom. On a loan with the minimum down payment, there is an annual premium of 0.55 percent of the mortgage amount – for example, $550 a year for each $100,000 borrowed.

VA Loan – The Veterans Affairs guarantees no down purchase mortgages for qualified veterans.  Private lenders usually originate VA loans which the VA guarantees.  The borrower pays a funding fee, which can be rolled into the loan amount and there is no mortgage insurance.

The VA funding fee varies depending on whether the veteran served in the regular military or in the Reserves or National Guard.  The funding fee can be anywhere from 2.15 percent to 3.3 percent.

Navy Federal Loan – The Navy Federal Credit Union, the nation’s largest in assets and membership, offers 100 percent financing of up to $650,000 to qualified members for buying their primary home.  Credit union eligibility is restricted to members of the military, some civilian employees of the military and US Department of Defense, and family members.

The credit union’s zero down program is similar to the VA’s however the one difference is cost: Navy Federal’s funding fee of 1.75 percent is less than the VA’s funding fees.

MortgageDepartment of Agriculture – Unfortunately, with the popularity of the Department of Agriculture’s Rural Development mortgage guarantee program, it ran out of money this spring.  Congress is expected to cough up more in time for summer home buying season however.  This loan offers no down payment and the Rural Development loans are not confined to farmland.

The USDA has maps on its website which highlight the eligible areas.  In addition to geographical limits, the USDA program has restrictions on household income and is intended for first time buyers although there are exceptions.  There is no mortgage insurance with this loan however the USDA levies a 2 percent guarantee fee, which can be rolled into the loan.