It seems like every time I turn around on the Internet, I come across another article on the demise of zero down home financing and the impact it will have on the Real Estate industry and First Time Homebuyers.

These articles run the gamut from shocking to discouraging. Many of the articles blame this situation on the sub prime lending practices in recent years. Many of the articles predict that First Time Homebuyers will no longer be able to attain the American Dream! Many say that 100% financing is gone for good. I say: Don’t believe everything you hear (or read). Zero Down Home Loans are alive and well.

This article is not about the current subprime situation. Subprime situations are a significant portion of the overall mortgage market, but they are nowhere close to being in the majority. The majority of the mortgages that get approved, each and every day in America, are the garden variety, middle-class, blue-collar type of transactions that we share with our neighbors, co-workers, friends and families. This segment of the mortgage market has had access to 100% financing for years and still does today.

Probably the best-known zero down home loan is the VA Loan for Veterans. 100% financing has been available to Veterans for a long time. There is no news that this will change. VA mortgages will actually allow a Veteran to finance not only the price of the home, but the cost of purchasing it (closing costs) as well!

If you are not a Veteran, you still have access to zero down financing. Fannie Mae (FNMA) and Freddie Mac have been supporting 100% financing for home buyers for years. Here are just a few loan programs that your loan officer has access to:

Freddie Mac Programs

• Home Possible® 100
• Home Possible Neighborhood Solutions® 100
• Affordable Merit Rate Mortgage
• Guaranteed (Section 502) Rural Housing (GRH) (this program allows 102% financing)

Fannie Mae Programs

• Flexible 100
• MyCommunityMortgageâ„¢
• Pledged Asset Mortgage

This is far from a comprehensive listing of available 100% loan programs. Many lenders have their own programs in addition to those offered by the government.

Just remember the next time your read an article or hear a radio ad about the demise of 100% financing in the mortgage industry; “You can’t believe everything you hear!” Good news just doesn’t sell as many newspapers as bad news.

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