family unpacks new home purchased with no money down mortgage

Have you dreamt of moving to a new home but worry about making a down payment? Do you feel like homeownership is out of reach because you don’t have thousands of dollars in the bank? 

We have some good news for you. Solarity Credit Union believes homeownership should be accessible for everyone. That’s why we offer no-money-down mortgages. It’s the perfect solution for those who want to own a house but are unable to afford a down payment. 

Plus, you have options when it comes to no-money-down mortgages. We’ll break down some of those options so you can decide which one is right for you. 

USDA loans 

USDA no-money-down mortgages are designed for both first-time and experienced homebuyers alike. Even if you are a current or former homeowner, you can still qualify for a no-money-down mortgage as long as you’re a well-qualified buyer. 

To make homeownership more accessible, the USDA Single Family Housing Direct Home Loan has 33-year loan terms for low-income borrowers and 38-year loan terms for very low–income borrowers. Longer loan terms enable you to keep your monthly mortgage payment low and, therefore, more affordable. The Single Family Housing Direct Home Loan also offers payment assistance to qualifying homebuyers, which could temporarily lower your interest rate to as little as 1%. 

Another benefit of USDA home loans is that you can finance up to 100% of the appraised value of your home. So if you are able to negotiate a purchase price that is less than the home’s appraised value, you can put the extra loan funds toward closing costs, home improvements or other eligible expenses. 

USDA home loans are a great option for those looking for a no-down-payment mortgage with flexible financing terms and competitive interest rates. However, they do come with a few caveats. For instance, the home you are looking to buy must be located in an eligible rural area. You must also meet certain income eligibility requirements. 

If you’re interested in buying a property located in a rural area, find out if you’re eligible for a USDA home loan in Washington State. USDA home loans are offered through local lending institutions, so you can also contact potential lenders to discuss your situation. 

No-money-down lender loans 

We understand what you may be thinking. What if you’re looking to reside in an urban area? Or what if you’ve already found the home you want to buy and it’s not eligible for a USDA loan? Many lenders offer a solution through a zero-down-payment loan option for well-qualified buyers. These loans are often available to both first-time homebuyers and current homeowners. 

Lenders like Solarity Credit Union empower prospective homeowners, like you, to transform dreams into reality by providing the right financing opportunities. No-money-down mortgages, such as Solarity’s Home Now loan, provide 100% financing, along with many other attractive benefits, such as flat closing fees, competitive interest rates and reduced private mortgage insurance rates (PMI). 

Since housing values fluctuate based on market conditions, PMI is a type of insurance you pay your lender until you are able to build up a certain amount of equity in your home. When you opt for a no-money-down mortgage, you very likely will have to pay PMI until your loan is paid down to 80% of the home’s value. If you put zero down, then you’ll probably be paying PMI for quite some time. So why not try to save some money on it? 

As not-for-profit organizations, credit unions are able to pass along their savings to their members. This happens through reduced PMI, lower lender fees and competitive interest rates. As you look for no-money-down mortgage options, consider working with a credit union such as Solarity. 

VA loans 

One other no-down loan option for eligible borrowers is a VA home loan. The US Department of Veterans Affairs offers VA-backed home loans that require zero money down as long as the purchase price does not exceed the appraised value of the house. These loans are available to active and reserve service members, veterans and surviving spouses

VA-backed loans also don’t require PMI, though you may have to pay a VA funding fee. If you’re interested in a VA-backed loan, you should contact your local Veterans Affairs office to learn more. 

Choose a no-money-down mortgage at Solarity 

Solarity’s Home Now loan and USDA loans offer competitive interest rates and cost benefits, ranging from waived fees to reduced PMI, plus so much more. Our Home Loan Guides will go the extra mile by providing personalized service throughout the loan process. It all starts when you complete an online application or reach out to our home loan team to discuss your zero-down options. 

It gets better. Once you’re approved and ready to close, you can do so from the comfort of your living room through our convenient eSigning Experience. All the paperwork is sent to you ahead of time so you can review it and be prepared. Plus, we guarantee that servicing of your loan always stays with Solarity. We’re with you from start to finish. From pre-approval to final approval, closing and mortgage servicing, you can trust that we’ll always be by your side. 

Starting to see that owning your own home is actually within reach? Great! Let us help you make it across the finish line. Take advantage of one of our no-money-down mortgages, and we’ll get you to the closing table in a flash. All you have to do is take the first step, and you’ll be stepping through the door of your new home in no time at all. 

Related articles

Do I have to put 20 percent down on a house

Do I Have to Put 20% Down on a House?

Do I have to put 20% down on a house? The short answer is no. Some lenders may require this, but it's rare. For some people, 20% down is simply not realistic.

Am I Eligible for a USDA Home Loan in Washington State

Am I eligible for a USDA home loan in Washington State?

If homeownership has ever felt like a dream to you, securing a USDA loan could transform that dream into reality.

Young couple sitting on the couch with their baby

Pros and cons of 0-down home loans in Washington State

This article walks through the pros and cons of 0-down home loans in Washington State so you can decide if this option for homeownership is right for you.

What's your Solarity story?

We're on a mission to tell the stories of our members and how they are living their best lives. Do you have a Solarity story to share?