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Zero Down Home Loans - Too Good to be True?
In the current market, many people will tell you that zero down home loans no longer exist. This is simply not true. While these loans have become harder to find in recent months, some mortgage lenders are still offering zero down home loans to help people purchase a home of their own.
While zero down home loans never disappeared for military veterans and for certain properties in some rural areas, most homebuyers recently have been shut out of the market if they don't have at least a 3.5% down payment. This has just changed!
I have very recently learned about a large bank in town which is offering zero down home loans with no private mortgage insurance. That's right, buyers can get 100% financing on a home of their choice, pay no mortgage insurance, and get an unbeatable interest rate. This is a brand new program which to my knowledge is only available at one bank in town. This program can be used in addition to the $8000 federal tax credit and NC tax credits which can add up to an additional $14,000 for certain properties. What this means is that it's possible to buy a home with zero down and no private mortgage insurance, have the sellers pay all or most of your closing costs, and receive federal and state tax credits totaling more than $22,000. This is obviously a windfall for first-time buyers.
These loan programs do require good credit, at least a 620 score. They are not all just for first-time buyers however. Generally speaking, the tax credits will only apply for first-time buyers (i.e. anyone who has not owned a home in 3 years), but the zero down programs do not have this limitation. There are really a lot of opportunities these days for homebuyers. I'm constantly researching new ways to help people take advantage of the wonderful values in this market. Please give me a call if you'd like to learn more, get questions answered, or explore your options.
Now that you know the basics, here are the next steps.
1. Contact me for a list of lenders that offer zero down programs and a description of the basic available programs.
2. Contact the lenders to determine who has the best program for your needs. To receive the lender’s most competitive rates up front, tell them you are “shopping around.” This will give them incentive to cut to the chase in order to win your business, which will also save you time and money.
3. Ask lenders if you need to pay private mortgage insurance with their programs.
4. Have each lender identify how much money you will need to cover loan-closing costs and how much they will allow the seller to pay. This is best accomplished by requesting a "good faith estimate".
5. Choose your lender.
I'm happy to answer any questions I can regarding zero down home loans and the home buying process. Just complete the short form below or give me a call at 336-346-1251. | 