2007-08-17 12:52:03 · 11 answers · asked by john b 1 in Business & Finance ➔ Renting & Real Estate
yes but I think many of them are from predatory lenders. Although there are some good programs for first time home buyers, you just have to be really careful of the loan terms
2007-08-17 13:00:03 · answer #1 · answered by Anonymous · 1⤊ 1⤋
"No money down" programs exist, but as an investment scheme (as seen on late night tv) they are primarily a way of getting the "investor" to spend money on a "program".
There are any number of programs designed to help people purchase a home for themselves to live in, and these are normally run by either state or local governments. The Veterans Administration's program for eligible Veterans is probably the best known, but many others are available, especially for first-time home buyers.
Some areas also have programs designed to get investors to buy blighted properties and fix them up. The idea is that the investor's money will go into repairs, and you can expect that the reason those programs are needed is that the properties involved have what we like to call "challenges". That's a nice way of saying "really big and expensive problems".
As far as investing in real estate, remember that there are professionals that do just that for a living. They work hard at researching properties and the local real estate market. If a particular property actually is a good investment, then there are investors willing to put money into them.
Some investors do actually use credit to purchase properties, but these folks have established credit histories and experience in renovating properties. Lenders are not (for the most part) stupid, and don't finance property purchases on a whim. They want to be sure that the loan will be repaid, with interest.
One way new investors do manage to finance the purchase of investment properties is to use some other source of collateral for the loan. Home equity loans are routinely used for this, but remember, if the investment property isn't worth what you think it is and you default on the note, you lose your home.
2007-08-17 13:13:09 · answer #2 · answered by Anonymous · 0⤊ 1⤋
A first time buyer getting a home for their primary residence with excellent credit can still get a no-money-down mortgage.
For everyone else, including investors, no. And there is no dumber time to be a real estate investor then right now... have you seen the news? It is a serious buyers market, and prices are still falling, and have a long way to go.
And those things you see on TV get-rich-quick infomercials are scams... they require you to break the law and take a deed without a mortgage, it scummy and illegal, so stay away from those deals.
2007-08-17 13:00:24 · answer #3 · answered by Mike 6 · 1⤊ 1⤋
No, not much chance of getting a no money down even if you were buying an owner occupied primary residence. We are seeing the end of that kind of risky loans. With regards to investors properties, lenders have always looked at investment purchases as a higher risk. As it is a statical fact that if a consumer experienced financial problems, the property that goes first is not the roof over their head. But in today's market it is even more tricky. Lenders are requiring much larger down payments, excellent credit histories, demonstrated past investment experience and hefty documented post closing asset reserves.
Please be careful of anyone offering you that kind of program for investors, in today's economic mortgage crisis some lenders are not even doing them anymore(especially in declining value states, some are requiring 30+% down with no allowances for any kind of gift or unsecured borrowing to meet these tougher criteria. So don't give any money up front
you may lose it. Below is a website that may offer you some additional information from the nation's purchasers of mortgage loans. Hope it helps!
2007-08-17 13:21:56 · answer #4 · answered by Etta P 4 · 1⤊ 1⤋
You already have a bunch of great answers and I have to agree that "no money down" is not a possibility anymore because of the HUGE number of foreclosures now and to come. Most lenders (and THEIR investors) feel that there is more at stake for the borrower if they invest cash into the purchase, thus they are less likely to fraudulently acquire the loan only to foreclose later. If they have something to lose other than the house and their credit, they are more likely to think twice.
2007-08-17 13:26:26 · answer #5 · answered by Angel Baby 5 · 1⤊ 1⤋
It can for a lucky few. It may be possible to get into some homes right now because so many people have not been able to keep up with the variable rate loans. You have to be in the right spot at the right time and have the right lender. If you are thinking of investing in one of those courses that promise you riches. It is true that somebody is getting rich, but it won't be you.pp
2007-08-17 13:06:28 · answer #6 · answered by ttpawpaw 7 · 0⤊ 1⤋
Absolutely. When investors say "no money down" they usually mean none of THEIR money down. It could come from a private lender, a partner, family, etc.... but, it's no money down for them.
2007-08-17 13:49:26 · answer #7 · answered by www.shaunramos.com 2 · 0⤊ 0⤋
No, it doesn't, unless you can find an owner that will carry the financing with no money down. Highly unlikely.
2007-08-17 13:35:43 · answer #8 · answered by godged 7 · 1⤊ 1⤋
These guys report to have programs:
http://www.uslendingrates.com/index.html
2007-08-17 20:37:20 · answer #9 · answered by bigct9 1 · 0⤊ 0⤋
100% financing is a thing of the past....
2007-08-17 13:07:19 · answer #10 · answered by ♥monamarie♥ 5 · 1⤊ 1⤋