Buying a Home Without a Down Payment in Lake County

According to recent data from Zillow, the median listing price for homes in Lake County, CA is $239,000. A traditional 20% down payment on a home that price would be more than $47,000. For a lot of home buyers – especially first time buyers – that kind of cash is hard to come by. The solution? A zero money down mortgage.

If you’re searching for a home to buy in Lake County, but are worried you won’t have enough cash to make a down payment, we have some good news! There are a variety of zero and low money down financing solutions available in the Lake County, CA mortgage market, including conventional and government-backed loans. Take a look at the popular low and zero money down loans below and reach out to us for details and a free rate quote.

USDA Rural Housing Loans

Let’s begin by looking at one of the most popular zero money down loans in today’s marketplace – the USDA Rural Housing Loan. This loan program is insured by the United States Department of Agriculture (USDA) and offers eligible borrowers the opportunity to own a home without having to make a down payment. With 100% financing, competitive interest rates, a 30 year fixed rate term, and no private mortgage insurance, the USDA Rural Housing Loan may be a great solution for first time home buyers in Lake County.

Repeat buyers may also be eligible for this zero down home loan. There are specific eligibility requirements that USDA borrowers must meet. Namely, the borrowers must fall within specific income limits for their area, and the home itself must be located within a USDA-eligible area. Almost any type of primary residence can be financed with a USDA mortgage; however, if you’re interested in buying a manufactured home, it must be on a permanent foundation on owned land. Learn more about our California USDA Loans >

VA Loans

VA loans are another zero down mortgage option for Lake County home buyers who are also active duty military, veterans, or even surviving spouses of veterans. With a VA loan, eligible borrowers can receive up to 100% financing on almost any type of single-family primary residence. They have competitive interest rates and do not require costly private mortgage insurance. Instead, the VA loan program requires a small, one-time funding fee to help support the program. This helps make the VA loan program self-sustaining, instead of relying heavily on taxpayer money to keep it going.

To save money on the funding fee, borrowers can elect to make a down payment. How the down payment affects the funding fee can vary, but in general, the bigger the down payment, the lower the funding fee. For example, for regular military personnel who are taking advantage of VA financing for the first time, a 5%-10% down payment will require a funding fee of 1.5%. By contrast, if they chose not to make a down payment, the funding fee would be 2.15%. Please note, these figures are subject to change and may have already changed by the time you’re reading this article. Be sure to talk to a mortgage professional to get the most accurate information on California VA loans.

1% Down Conventional Mortgage

If you find that you are not eligible for any of the zero down mortgage programs, don’t give up hope for homeownership! There are low money down loan options available, including our 1% Down Conventional Mortgage program.

This loan program allows a borrower to put down as little as 1%, while we contribute 2%. The combined 3% down gives the borrower the ability to apply for conventional financing at competitive rates. Learn more >

FHA Mortgages

There’re also the low money down FHA loan program, offering home financing with as little as 3.5% down. FHA loans also feature less strict credit score requirements, making them ideal for new borrowers who may not have had a chance to establish great credit yet. Although FHA loans are popular among first time buyers, they are available to repeat buyers as well.

FHA loans do require additional mortgage insurance premiums, however, even with these added costs, they can often be a more affordable alternative to choosing a conventional loan and having to pay private mortgage insurance (PMI) on it. When comparing the options, be sure to talk to your lender about weighing the pros and cons of choosing an FHA loan over a low money down conventional option. Learn more about our FHA loan program >

Have questions? We’re here to help.

At Empower Capital Group, we’re pleased to work with first time and repeat home buyers from all walks of life. Whether you’re searching for a zero money down program to buy your first home, or you’re ready to move up to something bigger and better and still want to save on upfront costs, chances are we’ll have a loan program that works for you. In addition to government-backed loans like FHA and USDA mortgages, we also have access to some Fannie Mae and Freddie Mac options requiring little as 3-5% down. If you would like to learn more about our company or any of the low and no money down loans available in today’s marketplace, please reach out to us by calling (707) 522-1887 or by filling out the form on this page.