Before the great recession, it was
comparatively easier to get no down payment mortgage.
But therefore, the financial crisis and the mortgage crisis shook all the
things a little and therefore credit requirements, mainly for the home loans,
tightened significantly.
But even it is not that easy to purchase a home with mortgage
with no down payment in the present climate, but it is not impossible
too, especially in case you can show that you have a good credit score and also
you have an adequate income. Besides, you should also be able to pay a higher
interest rate.
In some cases, the lenders
can be a little creative with your financing and therefore they can offer you
two types of mortgage loans with no down payment. The first one is for 10 or
20% of the total purchase price of the home. This will work like the down
payment, even in case you are putting nothing down in reality. Another loan is
for the remainder
of the purchase price of the home. But before you do it, you have to realize
that the interest rate on the small mortgage that is serving as your down
payment would possibly be higher than the rate of the actual mortgage no down
payment.
Another option to get this type of
mortgage is to qualify for several types of government programs, which can
offer a way to you to purchase your home without paying a down payment. VA loan
program is one of the most popular loan programs that can help you to purchase
a home without any down payment. But this program is only available to the
military veterans and their surviving spouses.
Apart from the above mentioned ways,
there are some other methods to avoid paying down payment to purchase a home
and these include taking part in the local housing programs, which allow you to
utilize “sweat equity” to pay for your home or getting a gift from any closer
friend or relative. In case of first option, you need to help others to build
their homes.
To learn more about the no down payment mortgages, you can consider visiting www.mortgagerefinanc101.com
