“I’ve been renting for years now; I’ve always paid my rent on time. I’ll
start a savings account
soon, so I can buy a house”: sound familiar? How much is in that savings
account now?
Just as I
thought, not enough, you went on vacation, found a car you had to have, or
WOW; look at the flat
panel T.V. on the wall that you’re renting, etc, etc. There’s a secret that
your landlord doesn’t
want you to know; you can buy a house with zero down payment. Do you want
to know how? Hang on,
here we go. Hire a good mortgage professional, it’s that easy. Do you want
to know more? Of
course you do, here are some mortgage programs to help you.
Many companies will do a 100% one loan. This program can be done as a
conforming, (good credit,
full income documentation; prove income through W-2’s and recent pay stubs)
or sub prime (those
borrowers that don’t quite fit into conforming guidelines due to less than
perfect credit or
trouble verifying income).
There is an 80/20 combo home loan too if you don’t mind paying 2 monthly
payments to pay your
mortgage. The advantage to this is you don’t have to carry mortgage
insurance on your first
mortgage as your loan to value is 80%, that’s the cut off for carrying
mortgage insurance. That
usually means a savings of $40.00 to $90.00 per month over a 100% one loan,
however the 80/20
combo home loan is a bit more difficult to qualify for.
The best option, if you’re non-military, is a FHA mortgage loan. This is a
mortgage that’s backed
by the government so there’s less risk to the lender. Now a FHA mortgage
loan requires a 3% down
payment, but that can be gifted through a down payment assistance program
that the seller
participates in. The great thing about a FHA loan is the interest rates are
low and usually the
seller of the home will pay most of your closing cost. Therefore you’re
buying the house with
zero or very little out of pocket expense.
If you’re in the military or a veteran of the military have your mortgage
professional check your
eligibility to use the VA (Dept. of Veteran Affairs) to back your mortgage.
The VA requires zero
down payment at a low mortgage interest rate, and your seller will generally
pay the majority of
your closing cost. Again, you’re buying the house with very little or no
out of pocket expense.
These are the most popular programs for a zero down payment mortgage. You
don’t have to have
perfect credit or a ton of money to buy a home. Just prove you’re
responsible, have the ability
to pay for your home, and the willingness to pay for your home. The
mortgage professional you
hire should have a list of real estate professionals to help you in your
search for a new home,
always use a Realtor to help you, it will make your life much easier, and
the seller pays their
commission from the sale. Good luck house hunting and finding the perfect
mortgage program for
you.
