How to Get a Home Loan With No Money Down in Pennsylvania
- 1). Find a home, and make certain it is in a location that falls within the USDA's rural housing guidelines. You can also qualify for a Veterans Affairs home loan if you have a history of military service. Contact a real estate agent for a list of areas with homes approved by the USDA, or search the USDA website for available properties. Visit the property to make certain it is a house in which you want to invest. If you are applying for a VA loan with no down payment, complete the proper forms through the United States Department of Veterans Affairs to gain proof of your service.
- 2). Meet income requirements. The USDA Guaranteed Rural Housing Program increased the maximum income applicants are allowed to have in 2010 to as high as $118,850 for certain counties. Requirements vary by county. Determine the location of the home you wish to buy and then check its county's income restrictions by contacting the USDA. You cannot make more income than allowed by that county in order to qualify for a no-down payment loan.
- 3). Check your credit score and work to improve it if it falls below 620. Make certain your credit history is clear of bankruptcies, judgments and foreclosures. Make extra payments on high-balance credit cards and bring accounts current in order to increase your credit score quickly. Applicants with a credit score of 660 or higher tend to have better success securing USDA loans with no down payments.
- 4). Contact an approved USDA or VA lender and apply for a home loan. Complete an online loan application on the USDA's website (pennsylvaniausda.com). Request a referral from the VA (benefits.va.gov). If approved, verify with the loan officer that you are qualified to purchase the home you've chosen with no down payment, or request referrals to properties that will allow you to put no payment down.
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