JasSays
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Yes, it is called 100% financing. You have to qualify for this kind of loan with a good credit history and score.. Check the difference in interest rates as well as closing costs when choosing this kind of loan.
Like with any mortgage loan, there is always a catch somewhere, just which one can you live with in order to purchase a new home.
Jas |
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Josi
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Yes, you can.
I see nothing wrong with it.
It's how I got my home loan.
We have great credit and money in the bank. I just chose not to spend it on a down payment because my husband has a dangerous job and I'd rather keep it as a cushion right now. We also have money in a 401(k) and other places that we didn't want to touch for a down payment.
You don't have to take out a piggy-back loan (80/20) to get a 100% financed loan and you don't get interest rates as high as credit card rates. Our interest rate is a little higher until we've established 20% equity in our home, because until then, we pay PMI insurance. (Private Mortgage Insurance)
However, it made better sense for us and I feel like we came out ahead in a lot of ways.
Check out some books by Suze Orman. She speaks in everyday terms and breaks things down wonderfully.
Educate yourself to see what the best options are for you.
Best Wishes! |
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Kenneth F
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Call your realtor. It can be done, but is not very popular and you would need an excellent credit rating. |
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Quest
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There are people making money telling you how to do just that. Think they are the ones getting mainly ahead.
Easiest is to go to a reputable lender and pre-qualify yourself. That will tell you how much you can actually qualify for / top price you can get a home loan on.
You then find a home within that range and make an offer wherein you get money back at closing to cover your closing costs = basically price presented at loan higher than actual selling agreement.
A good mortgage broker can help if you have credit issues. There are many programs available for first time buyers. Have to be very wary, know what you are signing for - that is the catch. |
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velcroboy15
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A first time home buyer can get away with a smaller down-payment say 5-10% but you pay more in interest than if you can swing at leat 30%. Can't say I've ever heard of anyone doing it with no down-payment - you'd have to have a damn good credit rating and some serious collateral to pull that off.
Good luck. |
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pedro
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Hello yes you can but it means you would hav at least 100% or more on a morgage and it would mean interest only ,PS try and save a deposit it would help you a lot. |
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KitKat
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In Connecticut you can. You may have to pay points (or a certain percentage of the total loan) but you usually get a great rate. |
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Nunoyvgvna Awi
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You can but your montly payment will be higher since you have put no money down. Over the length of the loan you will be charged more since you are financing the entire amount instead of part of the amount. And normally you have to have above average credit rating to even qualify for this.
But think......seems great to put nothing down and move right in. But now you have to pay more per month and more % per month......so did you really get a deal? No....you just gave more money to the bank cause you choose not to put anything down.
Same principal with credit cards. Wait a few weeks and save up the money and buy something or buy it now on a credit card but pay up to 20% interest or about 20 cents more per dollar spent.
This is how people get in trouble and behind......credit. The secret to getting ahead is doing the least amount of credit possible as that is money not given away. The more you can put down on a car, the more you can put down on a house, the more you pay with cash or debit card....the more money you will have in the long run. |
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chefgrille
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You can. There are plans and programs that deal with people with no downpayment. Expect to pay even worse interest rates than credit cards.
Rent for a while longer and save some money. Even a little downpayment will be better for your rates than none. |
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skcs69
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Yes you can. |
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whatevit
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YES: You have to make sure the Appraisal value is 130% or more of the sale price. $100,000 appraisal value will permit a $70,000 nothing down mortgage.
You can borrow the down payment on a second position mortgage note. Many parents make loans this way so their children can start owning vs renting. Many communities help young people get started by this method. The owner of the property for sale may take the down payment portion in a second mortgage. You won't know until you ask.
E-mail me and I can give you options. |
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hasgr8boyz
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Yes you can definitley do this my husband and I just recentley did this, and it is not nearly as horrible as everyone has made it out to be. We had a problem of having poor credit from stupid mistakes we made when we were younger. We couldn't find any banks that would lend us the money without crazy interest, so we went to a mortgage broker, gave him our information and since he had access to almost 80 different lenders he found a lender that was willing to work with us with 100% financing. Our interest rate is a little higher, it's 8.1%, not nearly as high as people make it out to be. And since we are only on a 3 year term that will be enough time for us to build up an even better credit score and then switch to a bank that will take over our mortgage. It's not nearly as bad as people make it out to be, the only "catch" is that you have to pay mortgage insurance since you're not having a down payment, but after you have 20% of your mortgage paid you can get rid of it. Yes having no downpayment is a little more expensive in the long run, but it's not horrible and all the while of making on time payments on your mortgage your credit score is increasing as well as the equity in your home. So if you are really interested in a no down payment mortgage I would try going to a broker, they will be able to help you out no problem. Good luck with everything. |
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♥ Emily ♥
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Yeah it's 100% financing. Depending on the cost of the home you may have to get one loan for 80% and another for 20%. There are many people who do these loans.And most the time if you can find a really anxious seller they will also agree to pay closing costs. I am an escrow officer and see it all the time. Really there is no reason to put $$ down on a home unless you plan on living there for the rest of your live. The market is always changing and going 100% financing and waiting for you home to appriciate and selling it is the smartest move in my opinion. |
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Sam
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Look in to lease-to-own or rent-to-own options. For example, you pay so much rent for the first year. A percentage of that rent goes toward your down payment. After a year (or a pre-determined amount of time), the owner then sells you the property. Be careful and do your research before committing to anything in writing, however. |
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toothymarine
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Sure if you find an idiot who will sell it to you. |
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lucee
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I've never heard that, and if you could, you wouldn't be able to afford the payments. The interest rate would be astronomical. |
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fezir
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If you could, the interest rate would be insanely expensive. |
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nicewknd
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I would reccomend against that, it would be better if you could come up with a 20% down payment to avoid paying mortgage insurance. Also by all means don't fall for the ARMs. They pull you in with a low introductory payment with no down payment then BAM after two years your payments skyrocket and you are no longer able to afford that house. Nothing comes easy, so start saving for that down payment before you are ready to buy. |
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Miss Cassie
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Yes, you can...problem is, you end up with 2 loans...they call this an 80/20 split. This alleviates the need for mortgage insurance because you are not taking a loan out for the full value. You have 1 loan of 80% of the value and another loan at 20% of the value.
GOOD LUCK!!! |
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sexytrojan
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Yes, Washington Mutual offers 100% loans. I haven't looked into them, though. |
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hollyberry1974
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You can get a loan for 80%, and a second loan for the 20% - but the 20% loan will be at a higher rate - from my experience it was about 10% interest on the second loan. Lots of lenders may require you to have PMI insurance if you do not have a down payment, the second loan got us around that. Check into first time buyer programs and if there are any classes you can get to reduce the % rates and help with the down payment. My friend got lots of help with those options. |
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xOxDominiquexOx
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no. |
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Angela M
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Yes, you can. There's no catch to it. You will have more principle to pay off(the actual cost of the home), which will increase your monthly payment and it will take you a longer time to be able to get rid of your PMI(personal mortgage insurance~~you can drop it when you reach 20% equity in your home). This also increases your monthly payment.
Talk to several mortgage providers. Don't talk to just one or pick the first offer you receive. There are a lot of different options for mortgages. No money down might be for you, but then again, it might not.
One very popular program that allows no money down is available to veterans. If anyone who's involved with the home purchase is a veteran, you could be able to buy a home for no money down. It doesn't have to be the person's first home. I purchased my second home no money down through this program. My sister and her husband also purchased their home no money down. |
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betatesterwood
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My best friend is in sales. He receives a partial payment throughout the year, and a lump sum at the end of the year. Since the money (about $80K) wasn't "mature" (it had not been in his account for over 3 months) they WOULD NOT let him use it for a down payment. He did not make a down payment at all. After 3 months, his realtor let him reevaluate the interest rate, and put a small down payment. |
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Anita C
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Yes it is possible to purchase a home with no money down. However you must qualify for 100% financing. There are many different types of loan programs out there especially for first time homebuyers. Some even do more than 100% financing (103%, 106%) so that you can finance in most of your closing costs as well. If you are military you can probably get a VA loan which is 100% but does have a funding fee (which can be financed).
As for the interest rates, they are not much higher than for 80% financing. It really depends on your credit score and other criteria that lenders use to determine your credit worthiness.
The best place to start is to contact a mortgage lender. Check with your bank first. |
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b j
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Most lenders would not accept less than 10% down payment. Even with down payments of 10-20% you will need to pay PMI (mortgage insurance). This is a private insurance policy that will pay the bank for the difference between the loan balance and the house's foreclosed value should you default
If you did find a lender that accepted no money down, I imagine they would charge you a very high rate of interest, and would have some other way to secure the debt. I would be wary of any company making promises like this.
It would be better to build up your credit, borrow or save the 20% down payment, and shop around for the best deal. |
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