no money for making the down payment

Hi Ellie,

Yes there are mortgages known as pledge account mortgage or asset backed mortgages which can be used when you do not have enough money for making the necessary down payment.

You can use any investment such as stocks, mutual funds for it. The investment will be used as collateral and you will continue to get the interests that are generated from such investments.

Thanks
Colin

Hi Ellie,

You can also go through this article for more information on pledge account mortgages and how they can be used when you do not have enough money for making the down payment.

Thanks
Blue

Hi,

You can also look for what are known as piggyback mortgages which can be used to avoid making the down payments altogether or making a partial down payment and take another loan for the remaining amount which you are not in a position to pay.

Please read through this article to know more about piggyback mortgages.

James

Hi,

You can use your savings account or stock investment as collateral, it's better to go for pledged account mortgage and not piggyback loans. The investments can include stocks, CDs, mutual funds, and investment property. Retirement accounts are not used to fund pledged-asset accounts. The assets which are pledged in lieu of a down payment can come from a borrower's own investment funds or from any family member.

Borrowers keep aside a certain part, about 40% of their investment portfolio in a separate account called "pledged account" which acts as the collateral for the entire mortgage amount.

Thanks,

Sara