0% Down Purchase

0% down purchase program is a very special loan program designed to help borrowers get into a home without an upfront down payment.

Key Benefits of 0% Down Purchase

0% down purchase is a perfect loan for first time buyers in central Ohio. Qualifying is based on income up to 80% of Area Median Income!

If you are a first-time buyer with strong credit and an income at or below 80% of the Area Median Income for your location, you may be a great candidate for this loan program. Instead of paying a 3% down payment upfront, a second lien for 3% of the purchase price is added to the loan. This second lien has a 0% interest rate and requires no monthly payments. The second lien, capped at $15,000, is due as a balloon payment when the buyer either refinances or sells the property.


Who is 0% Down Purchase good for?

  • Buyers with at least 620 credit score.

  • Buyers at or below 80% of Median Area Income.

  • Buyers interested in buying a 1 unit single family home.

Special Features of 0% Down Purchase loan

  • Loan Type: 30-year fixed primary purchases only. 
  • Down Payment Assistance: Can cover up to the lesser of 3% or $15,000 of the down payment.
  • Eligible Property Types: 1-unit single-family homes, PUDs, condos.
  • Second Lien: Due in full as a balloon payment upon refinance or final payment of the mortgage, or a payoff. No required monthly payment on the second lien, and it does not accrue interest.


Not every lender can offer this unique loan program. Instead of requiring a 3% down payment, a second lien for that 3% is added to the loan. 

This program is ideal for someone starting out—someone with good credit and a stable income but without the time to save up a down payment. 

Additionally, buyers can negotiate with the seller to contribute up to 6% of the purchase price toward prepaids and closing costs. 

After a few years of making payments, when it's time to refinance or move up to a larger home, the buyer can pay off the second lien as part of that process. 

This program is designed to relieve some of the stress first-time buyers may feel about needing significant funds at the outset of their careers.

 At Groves Capital, we prioritize taking a complete application right from the start of the process. By gathering all necessary documentation upfront, we minimize the need to request additional information later, creating a smoother, faster, and less stressful experience for everyone involved.