Zero Down Information

Stuck in the Rent Cycle?
New legislation allows First-Time Buyers to jump into the housing market with Zero Down programs

On December 16, 2003 , President Bush signed the American Dream Downpayment Act, into law. The Downpayment act was established to provide downpayment assistance to 40,000 Americans each year.

Rep. Patrick Tiberi (OH) introduced the Zero Downpayment Act of 2004, which will complement the American Dream Downpayment Act, by creating additional opportunities for first-time home buyers who do not have enough savings for a downpayment but could easily afford the monthly mortgage payments.

The Zero Downpayment Act, known as H.R. 3755, eliminates the downpayment requirement for buyers that purchase homes with the Federal Housing Administration (FHA) insured mortgages. Borrowers will have to meet specific FHA criteria, the downpayment and closing costs would be included within the loan. Borrowers will likely have to pay an additional quarter percentage on the rate of the loan, a higher upfront premium for five years and will have to participate in pre-purchase counseling.

This Act has received widespread acceptance, including support by the National Association of Realtors. For additional information contact your Realtor or Mortgage Consultant.