Not long ago I met with a First Time Homebuyer and her Mom. While the daughter was very receptive to all the "education" I was sharing with regard to the home buying process, Mom was just shocked to hear that there really wasn't a 100% financing option that would work for her daughter.

NO 100% financing? Are you kidding? Well...maybe a little bit. Although there weren't options available for this particular situation, I do want to shed a little glimmer of hope for those in different situations:

USDA RURAL HOUSING

Owning a home outside of the big city limits may be easier than you thought with USDA home financing. The USDA Guaranteed Rural Housing mortgage is available for salaried, non-salaried and self-employed borrowers and is not limited to first-time homebuyers.

Other features include:

o 100% financing up to the appraised value

o Fixed-rate financing available at FHA interest rates

o Gift funds allowed for closing costs

o New construction financing options available

VA HOME FINANCING

By guarantying the loan provided by lenders, the VA helps Veterans (and not just first time homebuyers) purchase a home at competitive rates and often without requiring a down payment or mortgage insurance. And while there are guidelines that must be met, the guarantee VA provides to lenders allows them to provide you with more favorable terms, including:

oNo down payment

oNo private mortgage insurance premium requirement

oVA limits the amount you can be charged for closing costs

oClosing costs may be paid by the seller

oThe lender can't charge you a penalty fee if you pay the loan off early

oVA may be able to provide you some assistance if you run into difficulty making payments

So you see, Virginia, there are still some options for 100% financing...It's just not a one-size-fits-all opportunity any more.