YES! It is Possible to Buy a Home with No Money Down!
Summary of Options
- Down Payment Assistance Programs – Home Buyers in Washington State have various programs to help buyers cover their down payment.
- VA Loans – Available to veterans, active-duty service members, and eligible spouses, VA loans require no down payment and offer competitive interest rates. If you qualify for a VA loan it is most likely your best option!
- USDA Loans – Designed for rural homebuyers, USDA loans also require no down payment and have favorable terms. However, they have income and geographic restrictions. They also have tighter Debt-to-Income requirements. Many rural buyers end up using a different Down Payment Assistance program.
- Seller-paid closing costs – Buyers with savvy Realtors and Lenders can negotiate with sellers to cover their closing costs, reducing additional expenses.
Down Payment Assistance in Washington State
Home Buyers in Washington State have several programs available to assist homebuyers with down payments. These programs are often income-based, but we also have programs with no income limit.
Popular Down Payment Assistance Programs
There are many Down Payments Assistance programs available for Home Buyers in Washington state. Here are a few excellent options:
The Home Advantage Program offers down payment assistance loans with deferred payments. This means that you do not make a monthly payment on the second mortgage. The Home Advantage Program provides zero-interest loans to cover down payment and closing costs. Borrowers must meet income and credit requirements to qualify.
The Pathways Down Payment Assistance Program offered by our Loan Officers. The Pathways Program has no income limit and does not require borrowers to be first-time homebuyers. This makes it a flexible option for those who may not qualify for income-restricted programs.
Local City and County Programs are also offered by many cities and counties in Washington State.
VA Loans (For Veterans and Military Members)
The VA loan, backed by the U.S. Department of Veterans Affairs, is one of the best options for eligible veterans, active-duty service members, and surviving spouses looking to buy a home with no money down.
Benefits of VA Loans:
- No down payment required
- Competitive interest rates
- No private mortgage insurance (PMI)
- Flexible credit score requirements
- To qualify, borrowers must obtain a Certificate of Eligibility (COE) and work with VA-approved lenders.
USDA Loans (For Rural Homebuyers)
The USDA loan, backed by the U.S. Department of Agriculture, offers 100% financing for homebuyers purchasing a home in designated rural areas. Many locations in Washington State qualify for USDA loans.
Benefits of USDA Loans:
- No down payment required
- Low mortgage insurance costs
- Competitive interest rates
- Eligibility is income-based, and applicants must purchase a home in a USDA-designated area.
- Lower Debt-to-Income requirements make this a tough option for some home buyers.
Seller-Paid Closing Costs
Beyond down payment assistance, seller concessions can help buyers reduce closing costs and overall expenses. In a buyer’s market, sellers may agree to cover certain costs to incentivize the sale.
Sellers may agree to cover closing costs, which can include:
- Loan origination fees
- Title insurance
- Appraisal fees
- Property taxes
- Homeowners Insurance Premiums
- Home Warranty Premiums
Using seller-paid closing costs strategically lowers upfront expenses, helping buyers enter homeownership with minimal financial burden.
Having an experienced real estate agent and lender familiar with down payment assistance programs is key to making seller concessions work.
Step-by-Step Guide to Buying a Home with No Money Down
Step 1: Select a lender who has the knowledge and capabilities to help you find the best program for you. Many lenders do not have access to the Home Advantage Program or the Pathways Down Payment Assistance Program. Make sure your lender has access to these programs.
Step 2: Complete the loan pre-approval process. Most Sellers and their Realtors want to make sure that the buyer for their home has been fully pre-approved. A loan pre-approval should include the lender asking you for income and asset documentation, as well as pulling your credit.
Step 3: Work with an experience Real Estate Agent. Make sure your agent is familiar with the specific Down Payment Assistance or other program that you will be using. In many cases, it is best to ask your lender for a Realtor that they are sure knows how to navigate this.
Step 4: Seller Concessions. Work with your lender to understand how much seller concession you need and can use. Then ask the lender to discuss this with your Realtor to determine the best strategy to get the seller to pay those for you.
Step 5: Complete any required home buyer education courses. Some programs require this. Some do not. Some programs may require a specific course that does not work for another program. Make sure you ask your lender to help you pick the home buyer education course that fits with the program you will be using.
Step 6: Secure your Dream Home! Once financing is approved, you’re ready to finalize your home purchase with little or no money down.
Final Thoughts
Buying a home with no money down in Washington State is achievable with the right strategy. By utilizing zero-down loans, exploring down payment assistance programs, and negotiating seller-paid closing costs, buyers can turn homeownership into a reality with minimal upfront costs.
Ready to get started?