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No Money Down Program

More Zero-Down Options Helping Homebuyers
 

(May 29) -- Because zero-down payment loans are riskier, lenders usually require borrowers to have some savings and a high credit score. However, a 100 percent loan offered by Freddie Mac could allow those who do not qualify for a traditional mortgage to become homeowners.

Eligible borrowers must have a minimum credit score of 620, a monthly debt totaling no more than 45 percent of their gross monthly income, and no late rent or mortgage payments within the past year.

While other no-down payment programs require three months of mortgage payments in the bank, Freddie Mac borrowers do not need to have any savings after the settlement. Borrowers must also read a "Home Buyer Education" booklet to learn more about homeownership and mortgages beforehand.

Source: Washington Times (05/24/02); Savage, Henry
 

Now you can purchase a home with no money down.  You can actually borrow 100% of the price of the home.  This is a great program for home buyers with limited savings. 

Features include:

  • 3% of closing costs to come from any combination of borrower's own funds, gifts, grants, unsecured loans, and other eligible sources.
  • No monthly payment reserve requirements.
  • Maximum total debt ratio of 41%.

Requirements include:

  • Minimum credit score of 620 required.  Alternative methods if borrower has no credit score.
  • Available for purchase, owner occupied primary residences.  One unit, including condos and PUD's.
  • Home buyer counseling required.

 

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Paul Rosso -- RE/MAX Properties, Ltd -- Pennsylvania

Cell - 215-778-9687 - Direct Line-215-968-7402 - Office-215-968-7400, X-7402