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Good News for First-Time Homebuyers As Zero-Down Mortgage Returns

Homeownership Program

For first-time homebuyers longing to purchase their dream home in the United States, their aspirations can finally become a reality as they don’t need to make any down-payment any longer to access a mortgage loan.

Rising House Prices Still Persists

Currently, house prices are insane, and it doesn’t seem to plummet any time soon. Typically, the costs could have kept potential first-time homebuyers from getting into the market. However, the no-down-payment rule can now make these buyers proud owners of a home without worrying about the rising prices in the housing market.

Before now, homebuyers were required to make a certain down-payment, usually between 3.5% and 8%, before they could access mortgage loans. Thankfully, all that has been put on hold after almost a decade. Things are gradually returning to normal, just as it was in the old days.

The No-Down-Payment Has Some Conditions

However, there’s a “but” to the new development. No-down-payment loans are only available for up to a million dollars, provided the wage earner has a good FICO score of a minimum of 700. Additionally, you will have to pay a 4.5% minimum interest on a 30-year mortgage, which will be adjusted after five years of payment. If you take up the second mortgage, the 15-year loan, the minimum rate is 9.9%.

Apart from the zero-down payment, the main difference between the recent development and the previous down-payment rule is that you don’t get to pay any prepayment penalties or excessive fees. While there are still some conditions to the zero-down payment rule, it will ease first-time homebuyers’ stress significantly associated with the typical Fannie Mae or Freddie mortgages.

Rates Are Still Below 3%

Today, Freddie Mac mortgage rates stand at 2.9% for the 30-year mortgage and 2.2% for the 15-year mortgage. Both mortgage fixed rates were down 8 and 6 points from last week. With low and zero-down mortgage rates, now is the time for first-time homebuyers to get into the train of homeownership.

Whether this new development will crash the housing market is utterly speculative. However, we fear that houses will be scarce to meet the demand if many homebuyers opt for the zero down-payment program.

Visit The Power Is Now Media, Inc. and read/watch more real estate and mortgage news, videos, and information on current developments in the real estate industry on Facebook Live and our YouTube channel. The Power Is Now Media, Inc. is leading the conversation in real estate.

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website:

Published by Eric Lawrence Frazier MBA.



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