No Down-payment loan options

Just a few years ago, the only low down payment loans were those insured by HUD. These included FHA, which has approximately a 3% down payment requirement and VA which is a no-down HUD insured loan for military veterans. That has changed over the last few years and conventional lenders now offer no down and low down loans. In fact, there are a couple programs that offer a less than no down loan... in other words, you can not only buy a home with no down payment, but you can even finance all the closing costs as well.

There are a few different ways to get to a no=down payment loan. There are 100% loans (all one loan); then there are the 103% and 105% programs for closing costs, and finally there are the 80% - 20% two-loan combinations to equal the 100% loan. Each option has different aspects that make it unique: