Mike’s Morning Mortgage Update – 0 down Loan Programs

The Truth About 0% Down Home Loans in 2026
Augusta 0 Down vs. CalHFA vs. Traditional Zero-Down Programs
Many buyers believe they need 3%, 5%, or even 10% down to purchase a home…
That's simply not true.
There are multiple ways to buy a home with zero down. But here's what most people, and even some lenders won't tell you:
0% down is not always the best financial move.
Let's break it down, especially for those of you working with buyers every day.
Option 1: Augusta 0 Down
Augusta 0 Down is one of the most aggressive and flexible zero-down programs available today.
What makes it different:

• 0% down (100% financing)
• Can exceed 100% CLTV (up to ~101 - 105%)
• No income limits
• Not restricted to first-time buyers
• FHA-based → more flexible underwriting
• Second lien is often deferred or forgivable
  Sounds great… and it is.

But let's be real, this is not for everyone.
This program works best for:

• Buyers with little to no savings
• Buyers who need to purchase now vs. wait
• Buyers who otherwise wouldn't be able to get into a home

The Reality Realtors Need to Understand
If your client has 3% to 3.5% down, they are almost always better off using it.
Why?
1. Payment matters

• 0% down loans typically carry payments 8 - 10% higher
• Higher loan amounts + layered financing = higher monthly cost

2. Better loan structures exist

• 3% down conventional → up to conforming loan limits
• 3.5% down FHA → can go into high-balance loan limits

That's a major advantage in higher-priced markets.
The Smart Strategy Most Agents Miss
This is where you separate yourself and win more deals
Instead of:
Buyer uses all their cash for down payment + closing costs
…and then stretches into a zero-down program
A better approach:

• Buyer puts 3% down
• Seller pays closing costs

The result:

• Lower monthly payment
• Stronger loan structure
• Better long-term financial position

Talking to Sellers (This Matters)
Listing agents and sellers need to understand this shift:
When a buyer asks for closing costs, it's not a weakness…
It's strategy.
Position it like this:

• "This buyer is bringing a down payment and structuring their financing responsibly."
• "By asking for closing costs, they're keeping their payment lower and improving long-term stability."
• "That reduces risk for everyone - including the seller."

A well-structured buyer is often stronger than a zero-down buyer who is stretched thin.
Option 2: CalHFA - A Good Program with a Tight Box
CalHFA is widely used, but it comes with clear limitations.
Key restrictions:

• First-time homebuyer requirement
• Income limits
• Credit score requirements (typically 660 - 680+)
• DTI caps around 45% - 50%
• Mandatory homebuyer education

It works well, but only if your buyer fits neatly inside the box.
Option 3: VA & USDA - Excellent, But Limited

• VA Loans → incredible option, but only for eligible veterans
• USDA Loans → true 0% down, but restricted by location and income

The Bottom Line (For Realtors)
Here's the message you should be delivering to every client:
0% down is a solution… not the strategy.

• Use Augusta 0 Down when needed
• Prioritize 3% - 3.5% down whenever possible
• Structure deals with seller-paid closing costs

That's how you:

• Close more deals
• Create stronger buyers
• Build long-term trust

Final Thought
The best agents don't just help clients buy homes…
They help them buy homes the right way.

And sometimes the best advice you can give is:

"Just because you can do 0 down… doesn't mean you should."
Quick Market Update
Interest Rates
Rates are looking better, though slightly off earlier lows today. The volatility isn't over, but optimism remains. If the current ceasefire holds and oil stabilizes, we could see continued improvement over the next couple of weeks.
Loan Program Snapshot

• Government (FHA/VA/USDA): mid - high 5s
• Conventional (≤ $832,750): high 5s to low 6s
• High-Balance: mid 6s
• Jumbo: low to mid 6s
• ARMs: 5s - 6s

Additional Options:

• Bank statement loans (10% down+)
• P&L loans (20% down, no bank statements)
• 0% down options (620+ credit score)
• DSCR loans (15% down)
• Bridge loans (~7.99%)
• Buydowns (3/2/1, 2/1, 1/0)

Rates subject to change without notice.
Condo Update
Good news: Nothing new
Bad news: Still nothing new
We love your non-warrantable condo deals.
Need help checking a condo? Call me - we can review it together in real time.
👉 Full California "naughty list":
https://mikemeena.com/non-warrantable-condos/

Let's Connect
If you or your clients, friends, or family need guidance, I'm here to help.

📞 Direct: 661-291-2222
📞 Cell: 661-714-6258
📞 Office: 661-260-2970 ext. 2222
📧 Mike@AugustaFinancial.com

Sincerely,