The Wall Street Journal recently blogged about the NASA Federal Credit Union offering a zero down option to its members in “We Have Liftoff: No Money Down Is Back“.
Image may be NSFW.
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Oh I get it the puns. It is fun to make the comment that you have to be a rocket scientist to get a zero down loan in today’s market — but I don’t see the humor in ignoring the program that’s out there that actually can help people buy a home.
While the NASA loan is only available in three states — and one of them isn’t Ohio — the key verbage in my opinion is at the very bottom of the release This offer is limited to well-qualified applicants.
But, Toby I’m Not A Rocket Scientist …
Well, I totally understand because trust me — I’m not — and I only know one.
Lucky for all of us – well except that one – there is a program that we can utilize — the United State Rural Development’s Guaranteed Housing Program. It was designed for those of that are … well not rocket scientists and have real jobs in the “real world”.
The benefits of the rural devleopment loan program are:
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- Zero downpayment
- No mortgage insurance
- Does not rely on credit score to determine elgibility*
Ahh, yes, the asterick on the last point. The rural development loan program does not include a credit score aspect, however it has followed a lot of the FHA guidelines and as FHA has tightened its credit score requirements — the rural development loans have also narrowed its acceptance criteria — on factors that would be impacted by the credit score.
This Sounds Too Good To Be True …
Well as long as you meet the program’s requirements it isn’t. However the program does have maximum income limits that dictate how much the borrower can earn yearly and also the loan is only available in certain locations — which can very from one home to the next.
In the greater Columbus metro area the maximum adjusted income for a family of four-or-less is $78,900 and for a 5-8 people is $104,150. Union County has its own numbers in central Ohio with a minimum of $88,350 for four-or-less and $116,600 for families of 5-8 people. In Knox and Marion counties the one-to-four family is $74,050 and the five-to-eight is $97,750.
The home has to meet criteria established by rural development — which again follow very closely along the lines of the FHA program.
Could this be of interest to you? Contact us today and we’ll get your more information on this unique program.
