Has anyone heard of a new mortgage that allows you to put zero money down and has no payments for 12 months?

Question

A friend of mine just bought a house and she said that her husband got a mortgage that was zero down and no payments for 12 months. She said it was a very new first time home buyers proram. I was looking around online and found no information about any loan like this. Just wonding if anyone has heard of something like this. Thx

Answer 1

I haven't heard of this program but there is one similar that we have (this not an ad, just answering the question). We have no mortgage payments up to 6 months. The seller or builder will create an escrow account to pay for your mortgage payments in addition to paying for your closing costs, if they choose.

This is not an Option Arm program, the rates are very reasonable (Conforming) and fixed. You pay the principle & interest. The down payment requirement is at least 5% and you can get around Private Mortgage Insurance by breaking the loan into two loans.

The wife may have misunderstood and this may be the program that they have.

Answer 2

That's a terrible deal, and is probably illegal in many states. I know that it is illegal in TX.

It sounds like a variation of the "Option ARM" loan, one of the worst products ever dreamed up by the mortgage industry.

The interest rate would be very high. Any payments deferred would be added to the loan balance so at the end of the first year you'd owe thousands of $$$ more than the original loan amount. On top of that, the rate is probably only locked for a very few months so your negative equity could spiral out of control as you sat idly by blissfully unaware of the financial train wreck heading your way with now way of stopping it.

Answer 3

There are all kinds of crazy mortgages out there including some like these. Doesn't mean they are good ones though. Making no payments and zero down means they have a huge interest rates when they do finally pay. Good luck to them.

Answer 4

I know hard money lenders who do that. A good loan officer can probably get you into a better program. I recommend First National Banc Corp. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a First National loan officer will contact you within 24 hours. Good luck.

Answer 5

it relatively is a query of stability. on an analogous time as I believe the 1st answer which you will pay off the interior maximum loan first, it rather is wise to have some funds in reserve - and with the aid of that I recommend in a chit costs account, no longer in threat interior the inventory marketplace. confident, you would be paying greater pastime on the interior maximum loan than you acquire on the low value costs, yet that isn't a get wealthy rapid scheme, it relatively is a secure practices first plan. So i'd say make a down fee of 250K, borrow 250K and positioned 50K aside, except, it relatively is, you have already got an emergency nest egg positioned aside someplace. you need to, with the aid of the way, place area of that 50K in a easy or Roth IRA. good success.

Answer 6

Bank of America is offering something with "no closing costs." It doesn't mention anything about no payments for 12 months, though.

Answer 7

I would stay as far away from something like that as possible. I don't imagine it's probably even legal in all areas. And, it would probably only be available in areas where housing values are growing at abnormally high rates.

Answer 8

Yes, there are all kinds of programs like this. Ask your local loan officer.

Answer 9

More people who should not be buying houses.