: Pure financial gifts distributed by local governments or nonprofits that never have to be repaid. They generally cover 3% to 5% of the purchase price.
( U.S. Department of Veterans Affairs ): Backed by the VA for active duty service members, veterans, and surviving spouses. These boast excellent interest rates and require $0 down payment with no ongoing monthly mortgage insurance.
( U.S. Department of Housing and Urban Development ): Insured by the Federal Housing Administration, these require a down payment of just 3.5% with a minimum credit score of 580.
This is the closest option to "free money". Funded largely by federal block grants and state initiatives, these are aimed at helping buyers bridge the cash gap needed to close on a home.
