Real estate expert explains how to get a mortgage with no money down

The ongoing recovery from the housing bust has made it harder to get money to buy a home. A lot of people are wondering how to get a mortgage with no money down.

A good credit score is paramount. If you have score under 600, then you’ll be able to get a mortgage, but you’re going to come up with a good down payment.

Here’s four options on how to get a mortgage with no money down.

THE VA

If you are a veteran, then you have a leg up that non veterans don’t have. The Veterans Administration offers a no-money-down mortgage to veterans. If you are married to a veteran, then the two of you can buy a house under this program. VA loans are available to any active duty and honorably discharged veterans from any of the armed forces, the National Guard and the Coast Guard. Surviving spouses of veterans kill in the line of duHow To Get A Mortgage With No Money Downty are also eligible.

The nearest VA office can explain how to get a mortgage with no money down under their programs.

NAVY FEDERAL CREDIT UNION

As the name suggests, the Navy Federal Credit Union is linked to the military. However, you don’t have to be in the military to join the credit union and apply for a no-down payment mortgage. Membership is open to civilian employees and contractors working for the of the Department of Defense as well as government employees.

The credit union has offices around the nation. Mortgage specialists there give you information on how to get a mortgage with no money down.

USDA

It surprises people to learn that the United States Department of Agriculture offers mortgages. You don’t have to have any connection to the government to apply for a mortgage with the USDA, but loans are primarily for homes in rural areas. The USDA definition of a rural area is pretty wide, so you may qualify for loan in places that are not what you’d consider the countryside.

Loans are also made only to people with low to moderate incomes. Again, the definition is pretty generous. Moderate income maxes out at 115 percent of the median income for your area. So what may qualify in rural Idaho may not qualify in parts of California.

Most counties in the US have a USDA office, but all of these offices do not have mortgage specialists. The staff in the local office can direct you to the nearest regional office and people who can explain how to get a mortgage with no money down.

80/20 LOAN

This is actually two loans. The first is 80 percent of the purchase price of the home. The other is 20 percent of the purchase price. The 20 percent loan functions as the down payment to secure the 80 percent loan.

This kind of loan requires a high credit rating and the proven ability to repay both loans. Not all lenders offer the 80/20 option, so you may have to ask around to find out how to get a mortgage with no money down.

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