Zero Down

Zero down loans have become the loan program of choice for the majority of first-time homebuyers. The expansion of zero down programs (including the MyCommunityMortgage Program) have eliminated the traditional hurdle of down payment.

Zero down programs allow you to buy your home now, instead of waiting to save enough for a down payment or using the money you have set aside for down payment on home improvement projects, moving costs, etc.

There are several options available for buying a home with zero down.

1. Get one new loan at 100 percent loan-to-value (LTV). PMI is usually required, and the insurance charges are not tax deductible.
2. Get an 80 percent first loan and a 20 second (piggy-back or 80/20) loan. This program does not require PMI, and all interest is tax deductible.

PMI is an additional charge you pay if you make less than a 20 percent down payment. This insurance policy protects the lender in the event of a payment default or foreclosure, and the loan is not paid off in full.