Exploring No Down Payment Options for Buying a House

Are you dreaming of owning your own home near or on Galveston but worried about coming up with a hefty down payment? Good news! There are options available that can help you achieve your homeownership dreams without the burden of a down payment.

1. City of Galveston Homebuyer Assistance Program (HAP)

The City of Galveston offers a Homebuyer Assistance Program (HAP) that provides eligible homebuyers with up to $14,500 in funds to assist with down payment and closing costs for the purchase of their first home. To qualify, applicants must meet the U.S. Department of Housing and Urban Development's (HUD) income and underwriting requirements, be a legal resident or citizen of the United States, and complete an eight-hour homebuyer education course. The selected home must also meet HUD's Housing Quality Standards and be located within the City of Galveston.[1]

2. Galveston Housing Authority's Homeownership Program

The Galveston Housing Authority's Housing Choice Voucher homeownership program allows recipients of Housing Choice Voucher federal housing assistance to apply their monthly rental vouchers toward the purchase of a home. Qualifying families must earn at least $15,080 annually, have been employed full-time for at least a year, and complete homeownership training. The program aims to empower families to transition from rental-assisted housing to homeownership, providing a path to owning their own homes.[2]

3. Zero Down Payment Mortgage Programs

While traditional zero down payment mortgages are less common today, there are still some options available for eligible homebuyers:

VA Loans: If you're a veteran, you might qualify for a VA loan with no down payment. The U.S. Department of Veterans Affairs offers loans that require good credit, sufficient income, and a Certificate of Eligibility. VA loans can come with perks like no down payment, no private mortgage insurance, and limited closing costs.

USDA Loans: The United States Department of Agriculture offers loans with low interest rates to help low- or moderate-income individuals buy homes in rural areas. USDA loans include the single-family direct homeownership loan and the single-family guaranteed homeownership loan, both designed to assist buyers in specific income brackets and regions.

FHA Loans: Although not a zero down payment option, Federal Housing Administration (FHA) loans require a down payment as low as 3.5% of the purchase price. This can be a more manageable option for buyers who may not qualify for other no down payment programs.

Buying a house with no down payment is possible, thanks to these programs and options. Whether you're a veteran, looking to purchase in a rural area like Alvin or Manvel, or exploring FHA loan possibilities, there are paths to homeownership that don't require a substantial upfront payment.

Remember, each program has its own eligibility criteria and requirements, so it's essential to research and speak with on of my trusted loan officers in the field like Allison Celeste with Movement Mortgage, Jeremy T Brayfield with SWBC Mortgage, or Kari Mays with Cadence Bank to determine the best fit for your situation.

With these options available, your dream of owning a home in Galveston County might be closer than you think!

Sources:

City of Galveston Homebuyer Assistance Program: https://www.galvestontx.gov/271/Homebuyer-Assistance-Program

Galveston Housing Authority's Homeownership Program:

https://www.ghatx.org/hcv_selfsuf.html

Zero Down Mortgages: Are They Right For You?: https://www.zillow.com/mortga.../zero-down-payment-mortgage/