OfflineI found this article on 100% financing that i thought was interesting. However, this financing is for owner-occupants, so this can help you sell your properties as long as the buyers have good credit. Charlie
100% real estate financing
Investing in real estate can be a very expensive deal. Lenders usually ask for a down payment to provide you with a loan to complete your real estate deal but this down payment can be at times difficult to arrange for. However, under certain situations getting a 100% real estate financing is also possible where you do not have to pay any money down.
These 100% real estate financing programs help people get a loan without making any up front payments for the down payment. If you wish to make a real estate deal for $500,000 then your 100 real estate financing would be the entire amount $500,000.
This type of financing option is also called as no money down mortgages and also zero down mortgages. Here we will be seeing how can you qualify for such financing options and what are the advantages of these loans.
Qualifying for 100 real estate financing
The first thing required to get a 100% real estate financing is a good credit. Having good credit can not only help you in securing this type of financing but also help you in getting good rates and terms on the loan. Before the lender offers you the 100% financing he would look into your financial status to make sure that you are a trustworthy customer. Besides this he would also check your debt levels, debt to income ratio, employment history, value of your assets, loan to value ratio, etc.
Getting a 100% real estate financing is similar to getting any other type of financing. If the lender is convinced that you are a trustworthy borrower then half of your problems are solved. The other steps of the 100 financing is similar to the normal mortgage procedure.
Though the deal of a 100% real estate financing sounds to be good but these types of loan are not provided to everyone. The lender would always try to minimize their risk by earning the dollars. This is the reason why the qualifying criteria for these types of loans are a bit stringent as compared to other mortgage types.
Advantages and disadvantages of these loans
As most mortgages, even the 100% real estate financing has its pros and cons. The main advantage of these loans is that you do not have to put in any money from your side. The lender provides you with 100% of the required amount as your mortgage deal. The other advantage is that the monthly payments with these loans are almost same as the rent payment. So instead of investing your money you would be buying the property.
However, with these loans the lender might ask you to put a security or some kind of property as collateral against which the loan would be given. This involves a risk that if you are unable to pay monthly payments on time they can take possession of your property without prior information.
In case you have pledged a security (e.g.: bond or stock) and if the lender finds that the security used has lowered in value then he can ask you for more security to cover the loss. The interest rate applicable on these loans is another disadvantage. The risk associated with these loans is anytime higher as compared to other types of mortgages.
Where can you apply for these loans?
The 100% real estate financing option has become a very common. Most of the mortgage lenders these days are providing this option. If you are looking for such a mortgage then you can approach any of your known lenders.
In case they do not have any such offer then you can try approaching a mortgage broker who can guide you on these loans and also help you in qualifying for a good loan option among his network of lenders.
Some of the lenders and brokers that help people with these loans are mentioned below.
Wachovia: http://www.wachovia.com/
They offer 100% mortgage financing. You can apply for their loan online and also get a pre-approval. You can contact them at (800) 922-6267, Monday - Thursday: 8:00am - 10:00pm ET; Friday: 8:00am - 6:00pm ET; Saturday: 9:00am - 6:00pm ET.
Commercial Mortgages: http://www.commercialmortgageyes.com/
They offer 100% mortgage financing for both commercial and residential properties. You can contact them at 1421 Sheepshead Bay Rd, Suite 255, Brooklyn, NY 11235 ; Office: 1- 718-791-3333, Fax: 1- 718-504-6203.
Ameristar Mortgage Corporation: http://www.ameristarmadison.com/
They offer 100% mortgage financing for people in Wisconsin and Illinois. You can get a pre-qualification with them. Contact them at 5325 Wall Street, Ste. 1500, Madison, WI 53718; Phone: (608) 242-0826, Fax: (608) 244-5850, e-mail: [email protected]
Alliance Mortgages: http://www.alliancemtg.com/
They offer provide 100% home mortgage loans and 80/20 home loans with no money down 100% financing with 600 fico scores. You can apply for their loans online. Contact them at Alliance Mtg Inc., 18000 Studebaker Rd Ste 700 Cerritos, CA 90703.
Wells Fargo: https://www.wellsfargo.com/
With them you can get a real estate financing with little or no money down. They offer a number of traditional and flexible options. You can contact them at 877-937-9357 ; M-F, 7 a.m. to 11 p.m., CT, Sat., 8 a.m. to 4:30 p.m., CT.
GMAC Mortgage: http://www.gmacmortgage.com/
They offer no down mortgage loans at affordable rates and at minimal private mortgage insurance premiums. You can contact them at 1.877.941.4622 for more details on their mortgage processing and offers.
Quicken Loans: http://www.quickenloans.com/
They offer no money down mortgage loans. You can contact them at 20555 Victor Parkway, Livonia, MI 48152 OR at 1500 W. Third Street, Cleveland OH 44113-1422 OR at 16425 N.Pima Road, McDowell Mountain Park, Building A, Suite 200, Scottsdale, AZ 85260 ; phone: 800-251-9080.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Yes, I got my house at zero down payment 4 years ago at 80/20 LTV. But I have friends who got it 100% financing from Bank of America. I did'nt know this program still exist if you have a good Credit Score. Need to check this. But thanks a lot cfuller for the info. LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
Hi DG Family:
I didn't know 100% financing was still an option in this market, I'm inspired by this news. I also realize that great credit is the key. This is only for owner occupants. From an investors point of view i'd have to buy a multi-family and live in it so I could get some cash out of my investment and be able to qualify for 100% Financing.
What would I do when I want to buy another property that I couldn't owner occupy.
What loan options are available and what would be the minimum down required. I'm just starting out and want as much info as possible: I want to be prepared.
Thanks
That commercial/residential one is in Sheapshead Bay, right down the road from me. I will look into this more, no money down is always the way to go.
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
This is a great read and also reference tool.
MzShar
I think the best way for you is to find a Very Good Loan Officer. They're the one's who knows different types of programs for different type of situation from different lenders. Lenders don't have the same program but it would help a lot if you search for a good Loan Officer who has access to different lenders. That's just my opinion. LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
Good to see you posting. When you acquire this information, could you kindly share? cfuller, thanks for sharing this valuable piece of information. I will bookmark. God Bless.
Sandra
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I have Found this information very informable.
I got a 0% down deal at a local small bank on a property that was possibly going into foreclosure. I have a credit score above 800. I told the bank about my previous deals, that I was staying in the area for a long time, and why I had such a good credit score (low risk- so far
). I also spent a lot of time in "relationship building mode" with the bankers. I also filled out a personal financial statement and gave details of my plans with the building. I shared my perspective on the rental/RE market. I brought the building from a non-conforming illegal residential/commercial unit into one that was conforming with the rules of the city. My attitude was, "how could they say no to me?"
Oh- and I will not forget to be thankful that the realtor who found me this deal also has a good reputation and put in a good word for me. I'm sure that went a LONG way- Thank you, mr. realtor!!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Thanks for your input. I'm in the process of looking for a good loan officer. I got a list of a few from a real estate agent. I will talk to them and see what they have to offer.
Thank you all for this information It will help with sellimng properties
Thanks again Fred E
for this information. I'm sure it will be very helpful in my investing career. Do you think a credit score in the 700 range would be high enough to qualify? And since this will be investing, would they want to look at whether you are currently working or not?
"Investing in you - Improving our community"
I also bookmarked this post
Thank you for taking time to share this valuable info!!!
Miyuki
Whether You Think You Can or Can't, You Are Right
~ Henry Ford ~
No money down is good but this one would not work for me. Although it is good
info for some one else to apply. Thanks for all that you do C FULLER
I'm looking to do no money down deals right now so a good broker is going to be key. Don't let a few no's stop you from getting what you want. I get that from some of my own family members. Thanks for all the posts, its been helpfull.
Lance
Why would you want to get a loan for a new investment property when Sub2 investing allows you to purchase a home using the existing mortgage
This is exactly what a new guy like me is always looking for. As I'm always seeing great deals but thinking how can I get the money if I wanted to "buy and hold" instead of assign the property. This is the kind of information that makes my "FUN" investing job easier! Thanks. Layman T. Scott
Watch out for PMI in the mortgage when you finance 100%. I had to back out of a deal because the payments went up almost $100 over what they said it would be originaly
For those of you that don't know what PMI is it's:
Private Mortgage Insurance.
PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI. (According to http://www.frbsf.org/publications/consumer/pmi.html#what).
I hope this helps anyone with questions regarding PMI!! Have a geat day my DG family.
Earl in MI
DG
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