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You hear this headline an awful lot…mostly in advertisements for get-rich-quick real estate seminars. Even though the application requirements are quite rigid and less forgiving, it is totally possible to get a mortgage without making a down payment by following a few requirements.
Required Program Qualifications:
1. An Excellent Credit History
- Absolutely zero recent history of bad debts
- Consistent and timely payment of all previous and current liabilities
2. Disclose A Current List Of All Liabilities
This will determine how much debt the lender will allow you to carry. Examples of any liabilities may be: loans, car, home, co-signed loans, credit cards, boats, R.V’s, motorcycles, property, etc.
3. Be Able To Prove A Minimum Of 3 Years Stable Employment History.
You will be required to show a letter of employment, or if self employed you must show financial statements for the prior three years.
4. The Financial Ability To Pay Larger Monthly Payments
Expect to pay a few hundred dollars extra per month on a zero down mortgage program. Without a down payment you will be required to meet the obligation of larger mortgage payments. Your monthly payments could vary from a few to several hundred dollars more per month.
Note: Understand that since this is such a unique program, not all lenders will offer it. If you plan on going this route, be sure and work with a lender who specializes in this. Also, not all properties will qualify for the Zero Cash Down Program. Your Lender or qualified real estate agent can provide current details.
Written by Craig Romero
http://www.mortgagemvp.com/mortgagearticles/zerocashdownbuyhome.html |
