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First Time Buyer Mortgages: What Does a $0 Down Mortgage “Cost”


UrbanLand Company
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Lots of questions come in from our Free Home Buyer Workshops regarding which mortgage to choose and how it works. A lot of the focus is always on the real costs of a $0 Down Payment home mortgage like the ones offered by DC Open Doors.

With DC Open Doors, the city’s Housing Finance Agency pays your Down Payment if you make less than $132,650 per year and have decent credit.  The loan is often used in conjunction with an FHA 3.5% Down Payment mortgage (DC Open Doors pays the 3.5% Down required).

If you’re planning on using DC Open Doors or a similar $0 Down Payment or low Down Payment program, you’re going to see a slightly higher interest rate and other fees.  We used a $300,000 home purchase with a 3.5% Down Payment ($10,500) paid for by the city. Your financed amount is only $289,500. Hit the Calculate button to see the numbers!

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Your core mortgage payment here is $2,036.61 using the $0 Down Payment loan. The monthly payment is higher than other mortgages, but you have to pay no down payment. Also, the $24,439.32 you pay for that year of mortgage payments goes toward your home loan and interest, not into your landlord’s bank account!

Want to get started on buying a home? We do regular tours of area homes & Open Houses, typically on Sundays. We also offer Agent-Directed Home Search, where we find exactly what you are looking for. We are full-time active real estate agents that know the DC and surrounding markets inside & out.  Just ask for Financing Help or to Meet an Agent and we’ll get you started!

Want to learn more live? Visit one of our Free Home Buyer Workshops at our NW DC offices!

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