0 Down Home Loans
Are there 0 Down Home Loans anymore? Yes they do exist but do you really want one? There are both positive and negative points you must take into account when considering this type of home loan. Not everyone will qualify for this type of loan as there are certain qualifications you must meet just like any other loan.
The first thought of not having to save for the down payment sounds great, but is the bottom line worth it? There is a lot to consider when opting for 0 Down Home Loans. Considering how long you will be in the home as well as what your monthly payment might be should be taken into consideration.
The purchase of your new home is considered the biggest purchase you will make in your entire life. Beginning the process isn’t that big of a deal because it’s the start. It is exciting and scary all at the same time. Once the paperwork starts being processed the excitement builds. When it is time to sign the papers, you may for a moment consider the option of not signing due to the financial responsibility you will have.
Sure you didn’t have to scrimp and save for years like so many others, but was not saving really worth it? The point of a down payment is to reduce the amount that will be borrowed. I am sure that you have heard this before: “The larger the down payment, the smaller the monthly payment and the less you will pay in the long run. ”
If the housing market is considered a buyer’s market, many potential home buyers would probably consider asking about 0 Down Home Loans. This type of market is when the buyer has more control over pricing and has a little more influence about what type of loan they should have. If you do qualify, the price is right, the fees are low and you can comfortably afford the monthly payment then why not?
To qualify for 0 Down Home Loans, the lender will review various financial statistics about the borrower. The borrower’s credit score, their financial history, other outstanding loans, open credit cards and so on. The borrower’s financial statements are scrutinized due to the larger amount of money the lender will be loaning compared to if the borrower was giving a down payment.
Most conventional home loans do not typically offer a zero down option. There may be what could be considered a minimal amount that is required by the borrower to submit as their down payment and they may be able to lock in their home loan with a very low rate. Most potential home buyers will opt to give a down payment to help reduce the overall payments and reduce the monthly payments that they will pay each month.
Talk to your lender or mortgage broker to discuss the different home loans available to you. If you have questions, this would be a great time to ask them. The 0 Down Home Loans are available to those who need and qualify for this home loan option..