Zero Money Down; I stand Corrected
I wanted to know if there was a way that I could do a true No Money Down Mortgage and I found the answer. The answer is a resounding YES!!! That is where a lender credit comes in but of course there is a tradeoff. Let me start by saying that here at Plattsburgh Mortgage Company we do not get paid on origination or SRP. We only get paid on volume so there is no benefit for us to charge anything on the back end. I have found a benefit in it for you if you are trying to buy a home, have half way decent credit, but don’t have any money saved for closing costs.
I am writing this post as a follow up to another post that I wrote recently about No Money Down Mortgages. I pointed out in that post that while there are some loan programs that allow 100% financing and 6% seller concessions that there are still going to be some closing costs leftover that you need to take into consideration. I advised that it is a good idea to save a month or two of your current housing expense to cover any additional closing costs not covered by the seller concessions.
This is where I stand corrected. There is an option that exists that allows our borrowers to come to the closing table with truly no money out of pocket, aside from the appraisal (POC). When utilizing a government backed No Money Down mortgage that allows 6% seller concessions, such as VA or USDA, there are usually some closing costs left over that need to be paid at closing. However, in an effort to provide the best products and service to my clients I did some digging, and here is what I found:
We can actually charge SRP on the backend, which does increase the interest rate, and give it back to our borrower as a lender credit. The payment is going to be slightly higher but you will be able to close with No Money Out of Pocket. This is on top of seller concessions and most often will be enough to cover whatever remaining closing costs are left over. So we can do true No Money Down Mortgages here at Plattsburgh Mortgage Company. You will have to bring Zip, Zero, Zilch, and Nada to the closing table by utilizing this option!!!
If you need a true No Money Down Mortgage please contact us to complete an application right away. We are federally chartered so we lend in all 50 states. We can complete an application over the phone, online, or in person if you are local.
If you are a mortgage professional looking for a way to better serve your client’s and would like to be able to offer a true No Money Down Mortgage please look into this option and see if it is something that your lender will allow.
Thanks for reading and as always comments are not only welcome but Very Much Appreciated as well!!!