Posted on: 03rd Sep, 2006 08:33 pm
As a physician seeking to purchase our first house I have seen multiple advertisements for no money down mortgages; (target audience = physicians). My questions are:
1. Does this option really exist?
2. Potential drawbacks? (fees, higher rates etc??)
Your help is greatly appreciated.
-Brian
1. Does this option really exist?
2. Potential drawbacks? (fees, higher rates etc??)
Your help is greatly appreciated.
-Brian
Brian,
No down mortgages are the home loans for which the lender does not require you to put down any cash towards the home purchase. Usually the down payment requirement is somewhere between 15 to 20%.
For no down loans, you will get a loan amount equal to the total purchase price of your home. Lenders are now offering such loans to first time buyers ( or those willing to buy vacation home) who haven't saved enough for the 20% down payment.
Yes, there are drawbacks. As it is a 100% financing, so you have to pay higher rates of interest while you repay.
Tobey
No down mortgages are the home loans for which the lender does not require you to put down any cash towards the home purchase. Usually the down payment requirement is somewhere between 15 to 20%.
For no down loans, you will get a loan amount equal to the total purchase price of your home. Lenders are now offering such loans to first time buyers ( or those willing to buy vacation home) who haven't saved enough for the 20% down payment.
Yes, there are drawbacks. As it is a 100% financing, so you have to pay higher rates of interest while you repay.
Tobey
Yes, no down loans mortgage do exist and lenders often require little or no cash at all from the buyer at closing. In return, the lender can demand a high interest rate from you.
Thanks.
Thanks.
Hi Brian,
"Does this option really exist? "
No down home loans are quite popular with people who do not have the required funds for down payment. One such popular option is the 80/20 or 80/10/10 loan which is commonly known as piggyback loan.
You will find details on the 80/20 loan option from our previous discussion.
Thanks,
Caron.
"Does this option really exist? "
No down home loans are quite popular with people who do not have the required funds for down payment. One such popular option is the 80/20 or 80/10/10 loan which is commonly known as piggyback loan.
You will find details on the 80/20 loan option from our previous discussion.
Thanks,
Caron.
Hi,
Disadvantage with this loan option is the balloon payment (a single lump sum amount) which a borrower has to pay at the end of the loan term. This balloon payment is higher than any standard mortgage payment.
Thanks,
Sara.
Disadvantage with this loan option is the balloon payment (a single lump sum amount) which a borrower has to pay at the end of the loan term. This balloon payment is higher than any standard mortgage payment.
Thanks,
Sara.
hi brian,
the biggest drawback with the 80/20 loan is that the house may appreciate in value with time. in that case, the homeowner has to pay the lender more cash than the house is worth. this creates inconvenience for the owner if he wishes to sell the house or refinance the loan.
regards,
jessica.
the biggest drawback with the 80/20 loan is that the house may appreciate in value with time. in that case, the homeowner has to pay the lender more cash than the house is worth. this creates inconvenience for the owner if he wishes to sell the house or refinance the loan.
regards,
jessica.
Attn
Do you need loan to pay Bill, contact us at: johnson.williams93@gmail.com
with the following information.Full Name:....Loan Amount Needed:....Loan
Duration.......
Mr Johnson....williams
Do you need loan to pay Bill, contact us at: johnson.williams93@gmail.com
with the following information.Full Name:....Loan Amount Needed:....Loan
Duration.......
Mr Johnson....williams
also, with such a low equity loan wouldn't you need to pay PMI?