Dear Jan:

We have no down payment to buy a home. Are there any 100 percent financing loans out there anymore? GF

Dear GF:

Most buyers in the lower-end market are now applying for Federal Housing Administration loans. These loans require a 3.5 percent down payment from the borrower.

However, because Kitsap County is considered a “rural area,” there are loans being granted by the United States Department of Agriculture called Rural Development Loans. These loans have a zero down payment. They do have a 2 percent fee which can be financed into the loan, so this becomes 100 percent financing.

But this does not address the buyer’s closing costs. The buyer needs to have funds of approximately 3 percent to cover their closing costs or ask the seller to pay their closing costs.

So essentially, the buyer can get into a home for zero down and zero dollars in closing costs. Because of the work load, these loans are taking a good two months to close.

Your real estate agent can give you the name of a good loan officer who handles RD loans.

Hope this helps you buy a home. Don’t forget the $8,000 tax credit expires in December. You would need to be under contract before the end of September to collect on that incentive. Happy house hunting.

Jan Zufelt is an associate broker with John L. Scott Real Estate. She can be reached at janzufelt@telebyte.com.