100% Financing With No Money Down is Still Available

I know, I know, you thought the No Money Down pitch was gone. Finally, you no longer had to listen to those annoying mortgage broker hawking their programs on the radio. It is likely that the hawkers are still around and fortunately the government does have a special FHA no money down program.

How it works is like this. You do a FHA loan. FHA loans require 3% down so you ask the seller to contribute 3% of the sales price at closing to a non-profit third party down payment assistance program. The third party down payment assistance programs such as Nehemiah and Ameridream then advance the money to the seller at closing.

But wait, you also are going to need an additional 3% for closing costs such as loan and title fees. Who is going to pay for that? Again, you will ask the seller to pay for it. For the closing costs you do not need to use a third party.

Here is an Example

You decide the property is worth $100,000

You offer the seller $106,000

The seller pays $3000 four the down payment assistance program and $3000 for your closing costs.

Some Points to Keep in Mind

*Make sure you are working with an agent and lender that is familiar with these programs and knows how to do all the appropriate paperwork.

*Be sure to ask the seller to pay the $499 fee for the third party program if you really do not want to bring any money to the closing table.

*Don’t even think about getting cash back because it is illegal.

*Jump on this program while it is still available, interest rates are low, and sellers are willing to negotiate.

All data taken from the WFRMLS. Information not guaranteed. All rights reserved Mark Alder ©, a Salt Lake City Real Estate Agent cell (801) 979 6275