Neither had I until I read in the Everett Washington HeraldNet newspaper about this name given to the VA Loan program that qualified Vets can use to buy a home by the article’s author.

Let’s look more closely at what the author means by the double zero-down VA purchase mortgage.

For starters, the author appears to coin the VA purchase mortgage as “double zero-down” simply because of the features of the VA loan program.

The features of the VA home purchase mortgage allow for a qualified Vet to buy a home with no money down – yes – 100% financing.

Even after all the ruckus from the mortgage and real estate crash in 2007-2008 qualified Vets can still get a mortgage with no down payment. So this is the first part of the double zero-down – no money out of the Vet’s pocket for down payment.

Next, the second feature that makes up the double zero-down VA loan program: tremendous latitude in “seller concessions” towards the Veteran home buyer’s closing costs.

VA loans allow for a seller to contribute a considerable amount of money to the Vet homebuyer’s homebuying costs. Suffice to say, with what the VA allows for seller assistance a Vet can buy a home with no money out of their pocket. In fact, in some cases and with some lenders the Vet can even get their sales contract deposit returned to them depending on what they negotiate with the seller.

So the bottom line – if you are a Vet and you don’t want to spend any money check into getting a VA double zero-down mortgage to buy a home.

The US Department of Housing and Urban Development (HUD) announced this morning at the National Association of Realtor’s (NAR) Midyear Conference that the Federal Housing and Administration (FHA) will allow it’s lenders to offer first time buyers the opportunity to use their $8,000 federal tax credit toward their down payment.  

This is HUGE!   

Now, if you qualify for the first time home buyer tax credit you don’t have to wait until you buy the house, close on it and then file or amend your taxes to get the $8,000.  The $8,000 will be offered in the form of a small bridge loan that will be paid back after you get your tax credit.  To find out more about the tax credit, check out this informative website. 

With the interest rates at historically low numbers, prices at 10-year lows and an $8,000 tax credit there has never been a better time to buy a home!  And I’m not just saying that because I get paid to.  

If I can help you with your dream of home ownership, please don’t hesitate to ask.

**(Some limitations and exclusions apply, yada, yada, yada…see your friendly loan officer or Realtor for specific details.)

So, in this DISCOUNT BUYER’S MARKET (notice that discount part, not even just a buyer’s market) with interest rates like 5% what the heck are you waiting for?  Who do you know that should be investing in a home for their family or building their investment portfolio while the time is right?

• In all AZ counties the FHA loan limit has been reduced to $271,050 with the exception of Coconino which will be $333,500. This is down from the 2008 limit in Maricopa and Pinal counties of $346,250.
• Fannie and Freddie have announced that they will leave the conforming loan limits at the current $417,000 (for all counties in AZ except Coconino which is at $450,000).  In other high cost areas (San Diego & Orange County and such) it will be $625,000.
• Freddie Mac has also announced that effective 2/2/09 they will no longer purchase loans with stated income/stated assets.  Lenders will implement the changes earlier than this date to insure a smooth transition.  Maximum debt to income will be 45%.