Can I get into a home with no money down?

“You need 20% down to get into a home, and your credit scores need to be over a 740.”  These are a few things we all have heard throughout our lives when asking about purchasing a home.  And for many people, these rumors about what is needed to buy a home prevents them from getting out of a rental and into their very own house.

Fortunately, needing 20% down and an excellent score is not required to buy.  In fact, you can get into a home with zero down.  In Arizona there are Down Payment Assistance Programs that give you up to 5% of the purchase price of a home as a grant.  The minimum required down payment for a first time home buyer is only 3%, so your entire down payment can be covered with these programs.

Outside of the down payment there are closing costs associated with buying a home.  For example, all purchases have title fees, lender fees, money collected for taxes, insurance, home owners associations, and home warranties.  Since you can get up to 5% in down payment assistance, and only 3% is needed down, you can use the remaining 2% in grant funds to cover these costs.  Also, if there are any costs remaining, you can always request in your offer to purchase a home that the seller covers the other fees.

So combining the down payment assistance with seller paid closing costs, you could get into a home with no money out of pocket.  But, do you need a 740 score to qualify for these programs?  Nope, a 640 is the minimum credit score.  Fortunately, the rumors we’ve all heard about 20% required down and needing perfect credit aren’t true.

If you have any questions about qualifying for these programs, please give me a call anytime.  My direct line is 480-635-3035.


Ryan Gilliam
Waterstone Mortgage
Senior Mortgage Banker

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