Published on Wednesday, 01 December 2010 02:38
The Zero Down Mortgage
2 No Money Down Payment Options
When you’re in the market for a home loan, you may wonder if the days of zero down home loans are gone. The answer to that is no!
You still have two key ways in which to qualify:
You can borrow money for the down payment.
You can have the seller give you the down payment.
Any first time home buyer is able to obtain down payment assistance using either grants or low interest loans. It would also be wise to check your first time home buyers grant programs.
How To Fund Your New Home
Any person who’s looking for a zero down mortgage should look into either method mentioned above. After all, it’s a fairly simple process. You’re in the market for a new house but just don’t have the kind of cash it takes to put down on the home.
You have, at your disposal, two no money down options:
You could request the seller to hold a second mortgage of up to 20 percent of the property’s purchase price. You can find many sellers who are easily agreeable to financing the down payment this way.
If you truly like a certain house and its seller does not want or refuses to fund the down payment, you can sign up using a third party program. This typically comes in the form of a tax-exempt charitable organization. The home seller will donate to the organization an equal amount of money that is required. The entity will pocket a certain amount of that money, generally between $750 and $1200 for fees and then pass the remaining balance onto the buyer for a down payment on the home.
Either one of these alternatives is a great choice for purchasing a home with a zero down mortgage.