Can I put no money down?
You could, but you don’t want to. When the house-buying boom was at its peak before the current foreclosures party, there were plenty of no-money-down mortgages to go around. Now that the mortgage industry is getting spanked, no money opportunities exist but are hard to find and not in your best interest. Diane St. James, a mortgage coach at abcmortgage.net, suggests sticking with conventional types of loans like the Flex from Fannie Mae, which allows up to 100 percent financing and up to 3 percent seller-paid closing costs. “Another good mortgage if you have very little money for a down payment or closing costs is an FHA mortgage,” says St. James. This is a loan insured by the Federal Housing Administration (FHA) through government-approved lenders who are a bit more lenient when it comes to the terms of a loan. “These loans require less than 3 percent down, which can all be a gift from a relative and it allows the seller to cover a generous 6 percent of the sales price toward your closing costs, often resulting in little to no out-of-pocket expense,” she says. It’s also an ideal choice for couples that have less than desirable credit.
Nestpert: Diane St. James, a mortgage coach at abcmortgage.net
by Alonna Friedman
7/2/08
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Buying a Home,
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