Late Night Infomercials aside,
You’re still going to have to bring some money to the closing table. You may or may not know that there are still NO MONEY DOWN home loans available for some areas under certain circumstances. I wrote a featured post yesterday about some borrowers that were less than truthful with me through the lending process and I ultimately had to deny their application.
One of the comments on that post got me thinking about this. Carla Muss commented in part that “Maybe they thought they didn't need a down-payment because they watched some TV info-mercial at 3:00 AM which suggested otherwise?” and she may be right.
What I want to share though is that there is a loan product that still exists that allows borrower’s to buy a home with no money down. That is; NO MONEY DOWN or 100% FINANCING. It’s true depending on your area and level of income. You may be able to purchase a home with NO DOWN PAYMENT!
That is not the same thing as having to bring no money to the closing table. Even if you are borrowing 100% of the sales price of the home you will still need to bring some money to the table at closing. There are a lot of expenses that go into purchasing a home such as home owner’s insurance, taxes, title & attorney’s fees, and recording fees… etc.
The loan that I am referring to which allows for 100% financing and 6% seller concessions is USDA Rural. We do these loans here at Plattsburgh Mortgage Company and they are actually quite popular outside of the city. You won’t have to bring much to the table at all but you will have to bring something. The amount that you will have to bring will depend on whether or not the seller agrees to 6% seller concessions and it will also depend on the size of the loan.
The home needs to be in an eligible area and you need to earn the average median income for your area or less to be eligible. There are also bank specific guidelines; our bank in particular can go down to a 620 credit score.
If you apply for one of these loans with us we will do our best to keep the funds that you need to close at a minimum but please be prepared to have to bring something to the closing. Save up at least a month or two worth of your current housing expense and that ought to do it.
Thanks for reading! Comments are always welcome and appreciated!!!