2006-07-12 00:56:56 · 7 answers · asked by wild bill 2 in Business & Finance ➔ Renting & Real Estate
Apart from what everyone else has said, you might:-
1. get a gifted deposit from a property developer that is selling the property. The risk is that the developer has overpriced the property in the first place so beware.
2. buy a wreck, get a mortgage (not 100%), borrow the rest from friends/credit cards etc. do it up, re-mortgage for a much higher value that allows you to pay back your extra borrowings. This requires investment skill.
2006-07-17 22:04:50 · answer #1 · answered by Frank M 3 · 1⤊ 0⤋
Get the seller to add in the costs and down payment to the selling price. The seller then gives a second mortgage to the buyer, in the amount of the downpayment and closing costs.
This is not a good idea. It is a gimick promoted on TV by companies selling how-to real estate guides. If it were a good deal, the people advertising and selling these schemes would be out buying property with no money down.
When you take out a mortgage, you have to pay interest. You get nothing for the interest. You have to pay real estate taxes. You get noting in return. You have to maintain the property. Maybe, just maybe, you will recoup some of the investment.
Before you buy, you should consider talking to an account or an attorney specializing in real estate.
Ask yourself this: a person buys a property with no money down. If he sells it, he may have to pay a fee to a real estate agent. He has to pay transfer taxes. Fees and taxes may be as much as 8% to 10%. Add in closing costs, taxes paid, any repair expenses. To break even (with no allowance for time spent) this person might have to sell a property, purchased for $50,000.00, for as much as $58,000.00.
Now you are interested in buying a property for no money down. Your attorney does a title search and finds that the seller paid $50,000.00. If a short amount of time elapsed, say six months, would you pay $61,000.00 (closing costs added to the 58) to acquire this property?
2006-07-12 08:20:03 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋
Your answer is simple. It means you are not putting any money down therefore you are financing the whole amount (100% financing)
If you do have the money for the down payment and the closing costs, I would suggest you use it but if you dont have money, have at least for the closing cost.
100% financing programs will charge you a higer interest rate than what you could normally get if you had some down payment
I hope this helps
Good luck
2006-07-12 14:28:32 · answer #3 · answered by SCCRealEstateUNCENSORED.com 3 · 0⤊ 0⤋
Well, let's get something clear. "No money down" means the purchase price is 100% financed.
Now, you will still have to pay for the closing costs.
100% financing can be one loan or, two loans. It can be of any combination 80% 1st and 20% 2nd (most common), 75%-25% or 90%-10% or any other combination.
2006-07-12 09:09:37 · answer #4 · answered by ap4homesandloans 2 · 0⤊ 0⤋
Twokay- not true!
I've got 100%, and the interest rate is the going rate, fixed for 3 years. Obviously they earn more out of you as you are borrowing the full amount, but they haven't penalised us because of it!
2006-07-12 08:03:02 · answer #5 · answered by star 2 · 0⤊ 0⤋
100% mortgage. They'll probably charge you an arm and a leg on interest and keep you tied in for as long as they can.
2006-07-12 07:59:31 · answer #6 · answered by k² 6 · 0⤊ 0⤋
http://www.lendermark.com/advantages_of_100_financing.htm
2006-07-12 12:50:36 · answer #7 · answered by lendermark1 2 · 0⤊ 0⤋