In OH there are many opportunities to buy a home with little or no money down. There are 80/20 loans, 100% financing with and without Private Mortgage Insurance, stated income 100% loans, 100% loans for people with credit scores below 600, and many, many other types of programs for people looking to buy a home with zero money down.
A zero down home loan allows you to finance 100% of your home purchase. These have become much more popular recently and have allowed more people to become homeowners than ever before.
Do keep in mind that you will need available money to put down an earnest deposit on the home you wish to buy. An earnest deposit can range from a few hundred dollars to over a thousand.
If you are thinking of purchasing a new home or even refinancing your existing home, you should obtain a copy of your credit report to make sure there are no errors on it. By obtaining your credit report in plenty of time, you will be able to fix the errors if any exist. This could open up more mortgage programs that would be available to you.
80/20 is a way to achieve 100% financing by structure two mortgages, one of 80% of the purchase price and a second mortgage of the remaining 20%. The second mortgage can be a home equity loan or a home equity line of credit. An advantage to using 80/20 is to avoid the costly private mortgage insurance premiums often associated with high loan-to-value mortgages.
Your loan can be structured as such that you wouldn’t need a down payment, and you could also have all of your closing costs paid for.
There are many ways to purchase a home with no money down. Some lenders allow down payment assistance (DPA) programs while others will allow sellers to loan you the down payment (seller held second mortgage). However, most lenders have loan programs that will give you a mortgage for 100% of the purchase price. These loan programs often do not require stellar credit.
Even if you have saved a sizable down payment, be sure to ask your mortgage professional about the pros and cons of 100% financing.
You may find you can keep your down payment cash and use it as an emergency fund, for investment, or to buy furniture for your new home.
Zero down home financing is becoming an extremely popular option because it allows homebuyers to enjoy options that were formerly only available with VA loans. Using some loan options it is possible to roll the closing costs into the loan and actually receive your upfront fees back at closing. Ask you loan officer if you qualify for this loan.
Zero down home loans are still a good choice for families who have money to put down. You can take your money you would have put down on a home and use it for investment purposes. Even if you put your money in an investment that yields the same interest rate as what you are paying on your mortgage you will still be making ground on your money due to the tax write-offs you have on your interest payment on your home.
Remember that even though it is a zero down loan that closing costs will still need to be paid. Seller assistance can be used to cover these costs if available.
In OH there are options available from the state that provide down payment and closing cost assistance as well as below market interest rates. Please call us to find out more about these options.
Having a FICO score of 720 or higher will significantly improve your chances of receiving a great loan for the 100% finance.
There is 100% financing available with credit scores as low as 580, but you will not receive the same rates as someone with a score of 720 or higher.
Contact Dave Zwierecki today at 888-418-4467 or info@TheMortgageU.com to explore the no money down home loans available to you.
Your credit score and liquid assets will be determining factors when shopping for zero down loan.