What are the risks of buying a home with no money down?

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What are the risks of buying a home with no money down?

2006-12-21 00:21:48 · 2 answers · asked by Frank Rizzo 2 in Business & Finance ➔ Renting & Real Estate

2 answers

the risk lies in the kind of mortgage that you apply for in conjunction with the'no money down'. Also, more than likely you will be paying extra "points" (usually 1% of the the loan for each point). If your mortgage is a variable rate then you will be held by economy and the danger lies in its unperdictabilty.

2006-12-21 00:27:31 · answer #1 · answered by Mike 1 2 · 0⤊ 0⤋

I don't know about risks but there are downfalls, such as a higher percentage rate and you may find it harder to get a loan.

2006-12-21 00:25:03 · answer #2 · answered by Anonymous · 0⤊ 0⤋