Think there isn’t a loan with a zero down payment? Think again. Most loans require some type of down payment and most of these loans have MIP (Mortgage Insurance Premium). MIP is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. MIP adds, on average, $100-$200 per month on to your mortgage payment.
The most traditional zero down payment loan is a VA guaranteed loan. This allows a qualified veteran to obtain zero down financing without paying MIP.

There are other great options if you are not a veteran. The first of these is a USDA loan. This type of loan is zero down but has location restrictions and charges a monthly mortgage insurance premium. USDA loan locations are typically rural and vary by zip code.

Hands down best zero down payment loan is the CHIP loan. Not only is the CHIP loan zero down, but there isn’t a MIP premium added on to the monthly payment. This alone will save the borrower thousands of dollars over the life of the loan. The CHIP allows for the seller to contribute money to pay the buyer’s closing costs or use grants if the buyer qualifies for the grant. The CHIP loan is a great way to buy. If you would like more information, please contact Chris at 469-389-2217.