Note (Feb 6, 2014 AD): Government regulation changes have resulted in several changes to this mortgage program over the years, and technically 5% down is a requirement. However, I have kept this page up because when people inquire about this program, I can often help them anyway. I do have ways still to possibly do a no down payment mortgage. My service is to find a way for you as a client, not to be a “big box store” for mortgages. So if you read this, do not be discouraged from contacting me and seeing how I can help you. Now, more about no down payment mortgages!
The Advantages of No Down Payment Mortgages
When you purchase a new home, one thing you are likely to do is save 5% for a down payment for a mortgage, depending on the type of home mortgage loan you are going to apply for. If you are applying for an insured mortgage, you are required to provide a minimum of 5% down payment for your mortgage. Add this to closing costs and the amount you’re responsible for up front could be between 5% and 6.5%.
If you would like to buy a home, but the 5% down-payment is difficult for you to provide, take a minute to go over your options—there’s other ways to buy your home with a zero down-payment mortgage. Some home mortgage loans allow you to finance your home with a no down-payment payment mortgage. With a no down-payment mortgage, all you will be required to bring in to the deal is the 1.5% of the purchase price of the home that covers closing costs such as the taxes to transfer the land as well as the legal fees.
For example, if your home purchase is $275,000, you would only need $4,125 instead of $13,750 to $17,875. Saving up that kind of money for a standard mortgage could take years, especially considering the average person saves less than $5,000 per year! In the 3 years it would take you to save up that money, a home buyer who uses a no down-payment mortgage method could have seen that amount or more increase in their home value. If you’re looking for the opportunity to get into a home and you can’t afford the down payment, then now is the time to act. Take advantage of this opportunity to get a 0 down mortgage for your home—just fill out the form and we can get started on getting you your home!