Before the market crash in 2008, no deposit mortgage financing was easily accessible and available. With house prices rising fast, lenders lowered their lending conditions to accommodate more borrowers. Consequently, as the house prices continued to increase, they became unaffordable to many. Currently, no deposit mortgages from commercial lenders by commercial lenders, and only borrowers with higher credit scores can access the loans.¹

The price of buying and building a home in California is relatively high, and it is therefore vital for public servants to have access to affordable mortgages. A public servant receiving 100% financing on their mortgage is a great boost towards the purchase of a home.²

Here Are Some 100% Mortgage Financing Programs Available

100% Financing – The USDA Home Loan

This program has been in existence since 1949 and is otherwise called the rural development loan. It is government-sponsored and meant to help develop rural communities by incentivizing homeownership with zero down payment. 

The requirements are not very strict, and most public servants can easily meet them. Consequently, the main target area is rural, but there are many suburban areas within the program. You have to be willing to buy a home within the USDA area. 

Besides the location requirements, your income must be below a particular income bracket to apply for the USDA loan. Thus, the mortgage is focused on medium and low-income earners who might have a hard time raising the mortgage deposit amount. 

The required credit score is 600. A 3.5% loan guarantee fee is necessary upfront, but the borrower can opt to put it into the loan balance. This enables a borrower to close the loan without having to give any cash upfront.

Veteran Affairs Loans

The VA loan offers veterans and military families 100% mortgage financing. Borrowers are not required to put any down payment, and the mortgage insurance, which is 2.15%, can be put into the loan. The requirements are proof of military service by obtaining a Certificate of Eligibility and a debt to income ratio of around 41%. This 100% financed loan can be accessed by public servants who have previously served in the military and can provide proof.

Navy Federal Credit Union Loans

The NFCU only offers 100% mortgage financing to its qualified members. However, the requirements are very restrictive open only to military personnel, US DOD employees, and their families. The program’s other characteristics are similar to those of the VA loan. However, the mortgage insurance is much lower at 1.75%.

Why 100% Mortgage Financing Maybe a Bad Idea

Borrowing with zero deposit denies your equity to the property compared to when you put in a down payment. In addition, mortgages tend to attract higher interest rates than traditional mortgages because they prefer borrowers who can afford a mortgage deposit.


Even though not many lenders offer no down payment mortgages to public servants, the mortgage interest rates are currently on the low, and it might be a good time to secure a mortgage before they start rising again.


“About Mountain West Financial and the CalPATH Home Loan Program

Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.

You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm). A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.

We look forward to working with you soon!

Sincerely, Joe Moore – Branch Manager”


Links of sources:

  1. The Economic Disaster Of 2008 Why It Can Happen Again
  2. Why Does it Cost $ 750,000 to Build Affordable Housing in California?