No Money Down Loans

No Money Down Loans
You want to​ buy a​ home but you​ do not have money for a​ down payment or​ for closing costs? Well,​ just forget it .​
At least that is​ what you​ have probably been told by people who think they know what they are talking about,​ but simply do not.
There are many loan packages available for people with no money to​ put down on​ the​ home or​ for closing costs .​
The home loan industry has undergone revolutionary changes over the​ last ten to​ twenty years .​
No longer is​ it​ true that you​ need to​ put down 10% and have enough money for closing costs in​ order to​ buy a​ home .​
The simple fact of​ the​ matter is​ that there are home loan packages that can get you​ in​ a​ home with no money down,​ or​ very little.
Let us first examine the​ down payment .​
a​ down payment is​ the​ amount of​ money towards the​ purchase price that you​ pay out of​ your own pocket .​
Typically people put between 5% and 10% down on​ a​ home when they sign a​ contract .​
This is​ not a​ legal requirement,​ but rather an​ established tradition .​
If you​ find a​ buyer who does not require a​ down payment on​ contract and you​ are approved for a​ loan with 100% financing,​ then you​ need not pay anything out of​ pocket.
But,​ just how do you​ do this? the​ first thing you​ need to​ do is​ meet with a​ mortgage professional and get that aspect of​ the​ process completed .​
You will want to​ have a​ pre-approval or​ even a​ mortgage commitment with contingencies based on​ home value and selling price .​
Armed with this,​ you​ will be in​ a​ better negotiating position to​ get a​ seller to​ agree to​ sell their home with no money down .​
Your lender also may be able to​ refer you​ to​ real estate agents that can help you​ find a​ home that you​ can purchase with no money down .​
Again,​ there are no legal obligations to​ put money down,​ it​ is​ rather just custom and tradition .​
With the​ right mortgage lender and real estate agent you​ will be able to​ purchase a​ home without any money out of​ pocket.
Aside from the​ down payment you​ have likely been told that you​ will not be able to​ purchase a​ home without money for closing costs .​
Closing costs can be anywhere from a​ couple of​ thousand dollars to​ tens of​ thousands of​ dollars depending on​ the​ value of​ the​ home,​ the​ size of​ the​ mortgage and other variables .​
You do not necessarily have to​ pay closing costs out of​ your pocket.
There are loan packages available for people that are not able to​ pay closing costs out of​ their own pocket .​
What these packages basically do is​ inflate the​ purchase price of​ the​ house by the​ amount of​ the​ closing costs and then have the​ seller pay the​ closing costs for the​ buyer with those extra funds .​
So,​ for example,​ if​ the​ purchase price of​ the​ house is​ $100,​000 and closing costs were calculated to​ be $4,​500 the​ contract would read that the​ sale price is​ $104,​500 and would include language that the​ seller is​ to​ pay $4,​500 worth of​ closing costs for the​ buyer .​
The seller still gets the​ $100,​000 for the​ home and the​ additional amount that was financed goes towards the​ purchasers closing costs.
Different states have different rules on​ how the​ language must read and what closing costs can and cannot be paid by the​ seller .​
You will want to​ make sure you​ have a​ full understanding of​ this process and how this will work under you​ specific circumstances.
Believe it​ or​ not,​ there are loan packages available that combine both of​ these examples - no money down and no money for closing costs .​
The property will need to​ appraise at​ a​ specified amount in​ order to​ qualify but the​ key is​ understanding that this very much can be done .​
It can turn a​ renter into a​ homeowner with nothing out of​ pocket and perhaps even a​ reduced monthly payment .​
Mortgage payments can be at​ or​ below rent payments depending on​ the​ home you​ pick.
Today's home loan industry is​ competitive .​
There are packages available for most people no matter what credit history they have or​ what funds they have available for the​ down payment and/or closing costs .​
Rather than deny your own mortgage application,​ speak to​ a​ mortgage professional to​ determine if​ you​ can begin realizing your dream of​ homeownership and a​ brighter financial future.

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