| Free Report - Buying with Zero Down
Not enough money for a down payment? Don’t give up. It may not be the problem you think. Here are five tips that might make owning your dream home a reality.
Ask lenders about zero-down lending programs.
Search for mortgages online. www.bankrate.com Call all of the banks and mortgage companies listed in the yellow pages and ask about options. Ask me for referrals to lending institutions. There are many lenders that offer 100% financing. These loans will require private mortgage insurance unless you put down 20%. You may get an 80/20 loan. This is a loan with the primary lender covering 80% with a second subordinate loan from another lender for the remaining 20%. This type of loan requires no private mortgage insurance (PMI). If you have VA eligibility you will not be required to pay PMI. It is important to remember that Zero down does not mean no money is required. Closing costs are required of all home buyers and although you may get a zero down loan you will still need to bring money for closing costs.
Maintain a good credit rating.
Zero-down loans typically require a satisfactory credit history. Get a copy of your credit report and check for inaccuracies. Resolve any problems as soon as possible.
Talk to your county’s housing department.
There may be federal or locally- backed financing programs with a zero-down option. Take advantage of these.
Check with your employer about financial assistance.
In some fields, like teaching or law enforcement, professional organizations offer financial assistance for home purchases.
Owner financing may be available for the house you want to buy.
Are they willing to carry the loan? Sometimes, if you commit to pay more than the asking price – or pay a higher interest rate – sometimes sellers carrying the loan won’t require a down payment. If you need owner financing I can check for homes for you.
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