Buying a home in Atlanta is a dream that some people in Georgia aim to achieve. Even some who already have homes in other cities still harbor such dream. But the problem has always been how to deal with the issue of down payment. Most house-buying dreams have been shattered because people think it is not possible to own a house without fulfilling the criterion of down payment.
If you must go for a mortgage, you have got to provide the document of the down payment made on the house you are willing to buy. That gives the lender an assurance that you actually need the money for the same purpose, and that it will be safe to give the money out to you.
By down payment of a home, what do we mean? When you pay certain percentage of the actual amount of money a person wishes to sell his or her house, you have made a down payment. Down payment is the money you must have before you visit a bank for a mortgage. The amount paid must not come from another loan. And that is where problem lies for some potential homebuyers.
When you pay a large amount of money in upfront of the percentage of the purchase price, it will be easier for you to get a loan. That will also increase your chance of getting a larger amount of money on a home loan. Conversely, if you are unable to pay part of the home price, or you are only able to pay little of the home purchase price, your deal with the bank is going to be affected.
But do you know you can get to buy a home in Atlanta with no money down? Check the following paragraphs.
Getting a loan solely supported by the government
The only way you can get a loan for a home purchase in Atlanta without a down payment is through a loan institution backed by the government. This kind of loan is upon government insurance. When you see a home you want to buy in Atlanta but with no credential to show for a down payment, you can walk up to a bank backed by government which gives out loan to people who want to buy homes.
As such, government will be obliged to pay out of the bills should they fail to carry on with the payment. This is in a bid to help out those who are in financial need to have a home. Because it is the instruction from the government, the risk of lending out money will not be there for the lender. Leaning on that, the lender then covers up some requirements and allows those who want to borrow without down payment. Two of these kinds of loan are USDA and VA.
• USDA loan: Sponsored by the United States Department of Agriculture, USDA loan helps bring about development in the rural and suburban areas in the country. If you are in the suburban area or in the rural area, you have fulfilled one of the requirements to get a home loan with no money down. Also, lower fees are paid compared to other types of loan. In its specification of a rural area, the USDA is not very strict, and that is why suburb areas are considered. Good news is that minimum credit score is not set to obtain the loan. But to guard against default, an upfront of 1% of the loan is expected to be paid as funding fee. Because it is in Atlanta, you have income requirement advantage which differs from state to state. With USDA loan, you can buy a home in Atlanta with no money down.
• VA loan: Veterans Affairs loan is also one of the loan strategies that can make you get a home in Atlanta without down payment. However, unlike the USDA loan, this kind of loan is open to both the current and the former members of military in the United States. If you are a former military member, or if you are currently a member, then you can obtain this loan to buy a home in Atlanta, with low rate in interest. This loan strategy also excludes mortgage insurance. Moreover, this type of loan comes with the strict rule of property requirement. A funding fee will also be required. Borrowing fee has a lot to do with the extent of the military service of the borrower.
To buy a home in Atlanta with no money down, you will have to explore one of the above possibilities. You can either take a USD loan or a VA loan. Either way, you do not need a down payment to get a home.