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No Down Payment |
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Dear Mrs. Lank: My husband and I are currently renting. We can afford a mortgage payment but the down payment is the problem. Is it possible to have the seller hold the mortgage instead of a bank? If so, what are the best steps to do this, and what is your opinion of this type of contract? |
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Quite a few regular mortgage plans are available that might suit you. FHA loans are one possiblity, with three percent down and sometimes less. VA loans (if one of you is a veteran) require no down payment at all. Many states offer special mortgages for first-time buyers. Sometimes lenders also allow the seller to pay part or all of the buyer's closing costs; you just have to find a seller who's willing to do that. Same with seller financing -- all it takes is locating a seller who wants to hold the mortgage. Most sellers would require a down payment, though, as it represents some safety for their loan. Real estate brokers know what's available. Talk with some who are active in the areas that interest you. Visit open houses, call on signs, answer ads, walk in to brokerage offices and ask for help
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Edith
Originally published on January 30, 2005 |
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