No money down mortgage?

Question

No money down mortgage?

Answer 1

Probably not right now. I don't know of any loan products that allow this any longer. Although I did hear an advertisement on the way into work today suggesting it was still possible. But I always take that with a grain of salt - I suspect it was a down payment assistance scheme.

FHA financing (offered by most mortgage providers) will allow you to get in with as little as 3% down payment, all of which can be provided as a documented gift from a relative. You will have to pay up front mortgage insurance and monthly mortgage insurance.

Also there is still Down Payment Assistance available through October 2008 when it goes away as part of the new housing bill. But the way that works is basically you agree to buy the home from the seller at a higher price and they send the extra proceeds to an intermediary who kicks it back to you for a fee. They are being eliminated in part due to the higher default rate of borrowers who go this route.

With conventional financing you will need at least 5% down payment, and some of that can be gifted. Doing that on a conventional will require that you also qualify for mortgage insurance. Anything less than 20% down payment on a conventional loan you will need mortgage insurance.

I don't know if ACORN (Association of Community Organizations for Reform Now) programs still offer 100% financing or not. Last I knew from them was probably 18 months ago. Bank of America and US Bank have been known to offer those in the past, but it may be on a per Loan Officer basis whether or not they have access to such options.

Generally banks figured out a long time ago that customers who put substantial down payments on their home were much less likely to default on their loan.

Answer 2

They are pretty much all gone.  I dont kow of anyone that still lends at 100% financing.

Answer 3

.    Just a few years ago every tax accountant was telling people to get the max tax-writeoff and put no money down.  How fast the times change.

YOu can get one.  SHop around.

Answer 4

Yes they exist, but not a good way to obtain a home.  That is why there are so many foreclosures.

Answer 5

If the lending agency is a shyster, they will loan you money for no money down.