All across the contry home prices have increase greatly over the past few years, and at the same time the average down payment has decreased. In many cases to zero or no money down. Here in Connecticut is no exception to that rule. Why? There are several reasons. It is increasingly harder and harder as prices increase to save the 5-20% to put down that has always been the norm. And more and more buyers are understanding you never want to "invest" money in something that will appreciated the same with or without your cash invested. Basically, why put it in, even if you have it. You can put that money to work somewhere else that you house.

Fortunately, many mortgage companies recognize how difficult it is to save for a down payment. Thus, some lenders have created special programs that make it possible to buy a home with little out-of-pocket expense. Ordinarily, if you had a down payment for a home, you would obtain better rates. However, because of low mortgage rates available right now, you do not need a down payment to still get a good rate.

How do Zero Down Loans Work?

A zero down loan will be a loan for 100% of the purchase price of your new home. The old favorite "80/20"'s are just not competitive right now. There are several options for mortgage insurance, including lender paid mortgage insurance where the cost of the mortgage insurance is a part of the interest rate, no separate charge.  This option can be have a much lower total cost than traditional mortgage insurance. Talk with your broker about options available for you, and what is the best least expensive option for you.

If you are hoping to buy a home with zero down in Connecticut, I would like to help you with your financing. The qualification for a zero down mortgage vary, perfect credit is not a requirement. I will help you to locate the best program for you and your unique situation.  Call me at 860-656-6018.