Zero down payment loans are designed to offer home ownership opportunities to borrowers with good credit who lack the ability to make a down payment on a home. It provides an option for those who wish to invest their savings in assets other than their home.

Recent government incentives include a tax credit of $8000 for first time homebuyers who purchase a home on or after April, 2008 and before December 1, 2009.  This tax credit can be taken on your 2008 or 2009 tax return.  As of May, 2009, the $8000 can be advanced at closing in the form of a short term loan against the future tax credit.  Talk to your mortgage professional for more details on this opportunity.

While you are not required to make a down payment, you will need your own funds for pre-paid interest, insurance premium, and possibly other closing costs in the transaction. These funds may come from your own bank account, a gift from a relative, or sale of assets you own. Up to 6% of all other closing costs may be paid for by the seller.