There are builder bonuses, but can that be used to walk in and buy a house without paying any money out of your pocket?
2007-07-14 10:14:16 · 5 answers · asked by frenchtriad 2 in Business & Finance ➔ Renting & Real Estate
It is possible to get a home with little or no money out of pocket. The determining factor is your credit score.
Now to prevent paying PMI normally your lender or mortgage broker will break the loan into two different loans called a 1st and 2nd mortgage.
The first mortgage will normally be for 80% of the cost of the property, with the second being 20% of the total cost.
Now since you want a mortgage that don't cost you anything out of pocket , most lenders as well as mortgage brokers will have to increase the interest rate by .125 or a .25.
For a variety of loans your best bet for securing the type mortgage you want is to contact a local mortgage Broker from your telephone book. Contrary to popular belief the charge about the same as a lender, but have more underwriters therefore many more programs to offer.
You will need to call one. There are lots of things needed to complete the loan process, but I will give you enough to get you started. You will need
#1 2 years of federal income taxes as well as W-2 from each employer from each person that will be on the loan.
#2 One month of pay stubs from each person that will be on the loan.
#3 Six months bank statements from all the banks you currently are using. You will also need to have statements from your 401-K program where you work.
Most builders will want you to use their mortgage people to qualify for any bonuses they offer.
So you have to decide it you are qualified for a 100% mortgage or if you want the builder's bonuses.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-07-14 12:45:58 · answer #1 · answered by loanmasterone 7 · 1⤊ 1⤋
It is possible. Usually banks require some form of down payment and I've never heard of them financing 100% for everything. But mortgage brokers have hundreds of types of loans to fit every situation, even no money down, no closing costs, etc. But the downfall to mortgage brokers and not having down payment money- interest is usually higher, most likely will have to pay mortgage insurance since your home equity is less than 20%, usually get a variable rate, and they charge high fees for finding the financing for you. If you go that route read all the fine print! Good Luck!
2007-07-14 10:25:37 · answer #2 · answered by Anonymous · 1⤊ 0⤋
That would depend on your credit score and if any lenders are loaning over 100%.
Loans for over 100% were happening but now that foreclosures are up, lenders are going belly up, and mortgage brokers/lenders are getting into 'ethical' trouble, it's harder to get those kind of loans.
You'd have to check around with various banks and mortgage brokers.
2007-07-14 11:54:36 · answer #3 · answered by Like being a DINK 4 · 0⤊ 1⤋
If it is a gift, maybe.
Otherwise--
There are fools born everyday, but they are rare. So I would say no, there will always be at least some property taxes to pay and other escrow items(insurance).
2007-07-14 10:22:27 · answer #4 · answered by oldcorps1947 6 · 0⤊ 3⤋
Look into FHA financing. Good luck!!!!
2007-07-14 14:12:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋