 TITLE: Types of No or Low Down Payment Mortgages CONTENT: Loans That Require No Down Payments\n-----------------------------------\nNearly all mortgages require at least some money down, but there are two exceptions:\n### VA Loans\nEligible veterans, service members and surviving family members can utilize VA loans, which are partially guaranteed by the U.S. Department of Veterans Affairs. They're offered via private lenders, but this type of government-backed loan typically requires no down payment, and offers lower closing costs and interest rates than conventional loans. The VA doesn't set a minimum credit score, but lenders have their own borrowing criteria.\nUnlike some other low down payment mortgages, VA loans require no mortgage insurance.\nHowever, there's a one-time VA funding fee paid upon closing (some borrowers are exempt). The amount depends on several factors, and for first-time VA loan borrowers, it ranges from 1.4% to 2.3%.\n### USDA Loans\nCreated by the government to make homeownership more accessible for Americans in eligible rural areas, USDA loans require no down payment and can be used to build, rehabilitate or improve properties. These loans are intended for primary residences only and have other income and property restrictions. USDA loans have no minimum credit score, though alternative sources may be required to verify that you have a history of making payments on time if your score is below a certain threshold.\nUSDA loans come in two forms: direct from the USDA, or via a private lender (and USDA-backed):\n*   **Direct USDA loans** are for low or very low income borrowers only, who don't currently have access to \"decent, safe and sanitary housing.\" This program offers payment assistance to temporarily lower the cost of a mortgage.\n*   **USDA-backed loans** are issued by private lenders, who set the interest rates. These are for low to moderate income homebuyers, without a requirement for need. These are also 100% financed, meaning zero down payment, with no mortgage insurance required. END