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No Down Payment |
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What are the benefits of having a down payment for a house and not having a down payment? |
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Unless you have some of your own money to put toward the purchase, you're going to have a hard time buying a house. I can think of only a few situations in which you might find financing with no down payment:
1. Perhaps the seller is taking back a mortgage for the whole amount. Foolish seller, by the way, because it's pretty risky when the buyer doesn't have any money tied up in the house. You might just decide, after you've moved in, to leave the key in the mailbox and walk away, burdening the property with a legal and financial mess.
2. If you are a veteran, the VA will guarantee part of your loan, and then a regular lending institution will consider a nothing-down mortgage, assuming you're also financially qualified.
3. In the past, but probably no longer given today's mortgage mess, unscrupulous lenders might consider a nothing-down loan, but the interest rate would be very high in return. |
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Edith
Originally published on February 5, 2008 |
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