Some home buyers may qualify for a mortgage with no down payment from the U.S. Department of Veteran Affairs guarantee program, Navy Federal Credit Union or the U.S. Department of Agriculture's Rural Development mortgage guarantee program, suggests Bankrate. However, all of these mortgage programs charge a lending fee or guarantee fee, as of 2015.
The Rural Development mortgage guarantee program charges a 2 percent upfront guarantee fee and a yearly 0.5 percent guarantee fee, according to Bankrate. Loan applicants can choose to roll this fee into the overall cost of the mortgage. To qualify, applicants must choose a home in an approved area, fall within the program's income guidelines and, in most cases, be first-time home buyers.
The Veteran Affairs program guarantees bank loans for mortgages with no down payment to qualified applicants, explains Bankrate. Like the Rural Development program, this program charges an upfront guarantee fee, which ranges from 2.15 to 3.3 percent, depending on veterans' service records and whether they are first-time or subsequent applicants.
Members of the military, civilian workers employed by the Army or U.S. Department of Defense, and their family members may qualify for a mortgage from the Navy Federal Credit Union, notes Bankrate. The funding fee is 1.75 percent, and home buyers must use the mortgage to purchase a primary residence.