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Zero Down
Programs
How to Buy A Home with Absolutely No Money Down
A new home ownership program allows qualified buyers to buy a home with absolutely no downpayment.
You may have owned a home before and are presently renting or maybe you are a first time homebuyer and need a way to break into the housing market but held back because you thought you required a $10,000, $20,000 or even more for a downpayment. Well regardless of your present situation, if you want to get into, or re-enter the housing market without having to make a cash downpayment, then this new program may be just what you're looking for.
Why pay your landlord's mortgage when you can be building
your own equity.
Industry insiders have prepared a new special report entitled, "How to Buy a Home With Zero Down", and reveals how this new and innovative program can get you into the housing market immediately and with absolutely no downpayment. Order this report NOW and you can get into the housing market NOW and with ABSOLUTELY NO DOWNPAYMENT.
Great News for home buyers! It is possible to buy
a home for zero down - We use a program called National Home Down
Payment Assistance Program. This is a brief outline on how the program
works: The very first thing to do is get pre-approved for a loan. (not
just pre-qualified) After your pre-approval, we will work together to
find a home that you want to buy. Let's assume for this example that the
home you are buying is listed for $150,000.
It will cost about $7,000 to close the transaction (downpayment and
prepaids). Normally, you would have to bring the $7,000 in cash to
closing, and borrow roughly $146,000. National Home Down Payment
Assistance Program is a program that will “gift” the downpayment and
prepaids to you. This gift is NOT a loan, and does not have to be repaid
at any time. But National Home Down Payment Assistance Program has to
recover their funds so that they can help other homebuyers. So we offer
$157,000 for the house. This allows the seller to be able to
"contribute" $7000 to National Home Down Payment Assistance
Program. The seller maintains his bottom line net,
so he is happy. The catch is the house has to appraise for the $157,000,
and you have to be approved to take a loan for $157,000. The appraisers
are becoming more aggressive on their appraisals, because there are more
defaults on transactions where down payment assistance was offered. This
is where my experience and expertise come in to help determine if the
transaction is likely to have any problems.
Yes 100% Financing Available
Although entire books have been written about how to buy a home with no cash down, in the real world of residential home sales no-cash down deals are rare. The reason for this is that most lenders want a substantial cash down payment before they'll grant a mortgage.
There are various reasons why buyers might want 100 percent financing for a home purchase. They might be short of cash. Or they may want to avoid liquidating other assets, like stocks, to come up with a down payment. And some buyers want to finance as much as possible for the tax break. Mortgage interest on a primary residence is tax-deductible, although restrictions apply.
Financing for 100 percent of the purchase price is available from conventional lenders for mortgage amounts up to approximately $500,000. To qualify for this financing your credit must be impeccable.
Many lenders use credit scoring as a part of their mortgage approval process. A credit score is a numerical score that is derived form an analysis of numerous variables from a prospective borrower's credit file, such as outstanding debts, late payments and delinquencies. The higher the score, the more likely you will repay a loan in a timely fashion. For 100 percent financing, most lenders will require that your credit score be at least in the 650 to 680 range.
Understandably, lenders who offer 100 percent financing will scrutinize your finances carefully before granting a mortgage. You'll be expected to have worked in the same line of work for a minimum of two years without any gaps in employment. Bankruptcies and foreclosures are not allowed. Even though 100 percent financing requires no cash down payment, you'll need to have cash to cover your closing costs. Also, some lenders will require that you have enough cash reserves to cover two months of PITI (principal, interest, taxes and insurance).
Don't expect a competitive interest rate on 100 percent financing. Rates will vary from lender to lender, but they may run a full percent higher than the going rate on an 80 percent mortgage.
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