Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.

The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.

Search for companies that specialize in zero down home loans.

Recently some mainstream banks have committed large amounts of their available mortgage funds to lower income or first time home owners that do not have a down payment. Search out lenders that look to help people without the funds to make a down payment. These banks are interested in seeing people buy homes they otherwise couldn’t afford and offer competitive rates to see you in the home of your dreams. 

Take steps to have the best credit score possible.

When you are applying for a zero down home loan, the better your credit the better your chances of getting approved. Obtain a copy of your credit report from each of the three main agencies and make sure there are no mistakes that could affect your chances of qualifying. Make sure to close old credit card accounts that you never use and even consider getting rid of some of your extraneous accounts such as department store and gas cards. Do not apply for any additional credit cards in the months before you apply for your zero down home loan. Every time a potential creditor pulls your credit report, it can shave points off of your credit score.

Take advantage of programs that help with the down payment.

Some cities have first time homebuyer programs that offer you money and that money can be your down payment. If you are a veteran take advantage of the VA program that allows you to buy a home without a down payment. Check and see if there are any city, county, or state grants that can help you to qualify for a zero down home loan.

Recommended Zero Down Mortgage Lenders:

These are the Best of the Best:
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The average rate of interest on mortgage loans continues to fall and has been under 5 percent for almost all of this past year, with this recent round of rate cuts seen as the lowest for borrowers in years. The reason, many borrowers today have bad or at least less than perfect credit scores. Still a borrower with less then perfect credit an jump through a few hoops and get a fairly decen rate on a loan.