After about 15 year hiatus, the 0% down payment mortgage loans are back. These loans, which are designed for home buyers who intend to occupy their homes as their primary residences, are meant to eliminate the #1 barrier to home ownership: down payment.
The typical scenario involves a purchase of a single-family home or condo up to $977,500 purchase price – the maximum amount varies depending on the County where the property is located.
1st mortgage up to 96.5% of the purchase price and a 2nd mortgage for the remaining 3.5% of the purchase price. The seller can pay Buyer’s closing costs, effectively making it 0% down payment home financing. There are no minimum income or first time homebuying restrictions.
This is a good financing option for home buyers who have solid incomes, but lack the funds for the down payment or don’t want to liquidate their investments or retirement accounts. Another news on the mortgage front is that mortgage interest rates have come down by about 1.5% in the second quarter of 2023. Last year traditional 30-year fixed mortgage were in the low to mid 7% and now they are hovering between high 5% and low 6%.
Here is a summary of some of the “niche” mortgage loan programs, which can be helpful for either purchasing or refinancing, depending on individual circumstances:
- Conventional and jumbo mortgages up to $10M (5.75% to 6.25% APR)
- 0% Down Payment financing (1st & 2nd mortgages, 7.3% APR)
- EZ qual loans for Self-employed borrowers – no tax returns required
- Cash out refinance – owner-occupied and investment properties
- Investor loans – rental and investment properties of all sizes
- Hard Money loans – equity-based, “bruised” credit OK
- Home Equity Conversion Mortgages (HECM) – borrowers 55+, no mortgage payments required
Statewide Home Loan Corporation offers FREE Mortgage Consultations and FREE Loan Pre-Approvals. For more information click on this link or call: 619-280-9990 x.110 or 1-800-507-9990, www.shlc.com . Equal Opportunity Lender, NMLS 313352.