Foreclosure Strategies
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December 12, 2014 By
The no money down mortgage, to a minor extent, still exists in the United States. The no money down mortgage, which to a considerable extent, was responsible for the housing bubble that existed in the United States in 2008, does still exist in 2014. Although this type of mortgage is still available in the marketplace, it is hard to find.
What is a no money down mortgage? This is a mortgage where 100% of the purchase price of a house is financed. A no money down mortgage can allow people with virtually no assets to buy a house. However, these types of mortgages usually come with higher fees, and high interest rates.
Veterans’ Administration Mortgages
The Veterans’ Administration still has mortgage programs which allow veterans to purchase homes without putting money down. These programs, however, have funding fees of two or three percent. The fee is required to be paid in advance. This payment in advance actually creates a down payment of sorts.
There is also a program by the United States Department of Agriculture which offers no money down mortgage in rural areas. It should be noted that some suburban areas around large cities are still considered to be rural areas by the United States Department of Agriculture.
Credit Unions
While banks are for profit institutions, credit unions are not for profit institutions. An example of a credit union which offers a no money down mortgage is the Navy Federal Credit Union. The no money down mortgage given by the Navy Credit Union has a 1.71% funding fee. This funding fee must be paid at the time the mortgage is given.
What Mortgage is Right for You?
If you are in the market to buy a home, you should meet with a mortgage consultant. You should discuss your financial circumstances and make inquiry as to what type of mortgage is best for you and your family. This discussion should take into consideration your long term ability to make the mortgage payments to avoid having your home going into foreclosure.