Zero Down Home Financing - No Money Down Mortgage Loans
Carrie Reeder
When To Pick A No Money Down Mortgage
A no money down mortgage is a viable option for many people. For one, you can get into a house for about the cost of rent. You can hold onto your cash for moving expenses rather than a large down payment. For those looking to buy a vacation home, zero down helps you keep your assets liquid, not needlessly tying them up in a property.
Choosing Your Zero Down Mortgage Loan
Zero down mortgage loans come with two different terms. The most common zero down mortgage finances just 100% of the home's price. All closing costs and application fees are still required.
The other zero down mortgage includes fees with the loan up to 3% or 5%. Since the principal is over the home's value, these types of loans are harder to qualify for. In most cases, you need an excellent credit score and cash reserves.
Skipping PMI With No Money Down
One of the hurdles of a no money down home loan is the additional cost of private mortgage insurance (PMI). Most conventional loans require you to carry this insurance until you reach 20% equity either through appreciation or payments on the loan's principal.
You can avoid this expense by piggy backing your loans. By taking out two mortgages, one for 80% and the other for 20%, you don't have to pay premiums. The same lender can carry both loans, or you can choose different lenders.
Finding The Right Lender
To find a lender who offers zero down financing, start by asking for loan quotes for no money down mortgages. With most online sites, you will get a response in minutes on rates and terms. If you have trouble qualifying with a conventional lender, turn to a subprime lender. They offer more creative terms.
About the author:
View our recommended Home Mortgage Lenders or view all of our Re commended Bad Credit Lenders.
The latest information and news on Mortgages:
Mortgage rates rise for first time in 12 weeks
Mortgage rates for 30-year US loans rose for the first time in 12 weeks as Americans sought refinancings amid record-low borrowing costs. United States - Mortgage - Loan - Financial Services - Business
Mortgage rates edge up; Housing market still slow
Record-low mortgage rates failed to pull the housing market out of its funk. Now rates are inching higher, but don't blame them if home sales stay sluggish.
Mortgage rates edged up a bit last week
Mortgage rates mostly edged up last week as investors' fears about the economy eased. Mortgage buyer Freddie Mac says the average rate for a 30-year fixed loan was 4.35 percent, up from 4.32 percent the week before. Applications to refinance home loans fell 3.1 percent last week, their first drop in...
Mortgage rates bounce back
Mortgage rates rose off last week's record lows, while borrowers remain locked in "pause mode."
Avg. mortgage rate up to 4.35 pct. off decades-low
Mortgage rates mostly edged up last week as investors' fears about the economy eased.
Yahoo! News Search Results for refinance
NABARD To Refinance About INR400 Billion Of Loans This Fiscal Year
NABARD To Refinance About INR400 Billion Of Loans This Fiscal Year
Do You Want To Refinance But Can't?
ATLANTA -- Do you want to refinance but you can't because you owe more on your house than it's worth? If you live in metro Atlanta and are willing to go on camera, please email Clark Howard's producer at patti.d@wsbtv.com.
Tata Steel to refinance $5.5-bn loans
Tata Steel is looking to refinance around $4.5-5.5 billion of its European loans. "We are looking at refinancing our European loans. We will refinance around $4.5-5.5 billion while the gross debt is around $9.5 billion," Tata Steel managing director HM Nerurkar said on the sidelines of a CII Metals ...
Refinance plan has its critics
The government will launch a refinance program this month that targets homeowners who are underwater on their mortgage but have not missed a monthly payment.
How To Refinance Your Home: A Personal Journey Part I
In which the writer matches wits with the home mortgage industry.