Making Homeownership Accessible: Valor’s Exclusive 0% Down Purchase Program

Homeownership is a dream for many, but for many, this is as far as it would go - a dream. Until now, that is. Valor Mortgage has been granted the ability to address this challenge with its 0% Down Purchase program.  This assistance initiative aims to make purchasing a home more accessible.

Understanding the Program

The 0% Down Purchase program is designed to help borrowers cover the upfront costs associated with buying a home. This program provides a secondary loan, or “second lien”, which offers up to $15,000 (or 3%) of the purchase price of the home. This program requires no down payment from the borrower.

Key Benefits

1. No Monthly Payments: With this 0% down payment program, borrowers aren’t required to make monthly payments on the second lien. This feature removes the burden of additional monthly expenses, helping borrowers focus their financial resources on other necessities or savings.
2. No Interest Accrual: Unlike typical loans that accumulate interest over time, the second lien provided does not accumulate interest. This means that the amount you borrow remains the same. This makes planning expenses much more manageable.

Repayment Conditions

While the 0% Down Purchase program offers immediate benefits, it’s important to understand the repayment conditions associated. The second lien must be paid in full as a balloon payment. The conditions for this are:

1. Refinancing the First Lien: If you choose to refinance your primary mortgage, the second lien will become due at that time, and will be added to the principal balance.
2. Payoff of the First Lien: When the primary mortgage is paid off, the second lien must also be repaid. This condition makes sure that all borrowed funds are cleared when the main obligation ends.
3. End of Amortization Schedule: At the conclusion of the primary mortgage’s amortization schedule, the second lien is due. This means that as you reach the end of your mortgage term, you’ll need to prepare for the repayment of the secondary loan.

Making Homeownership Achievable

This 0% Down Purchase program is a big step in making homeownership more achievable for individuals. By reducing the initial barriers and providing clear repayment conditions, this program gives people the ability to invest in their future and own their own homes.

Whether you’re a first-time homebuyer or someone looking to move into a new property, Valor Mortgage can help you purchase a home with 0% down.