is there really such a thing as no money down on buying realestate if so where do I find this place thank you?

September 28th, 2009 | by admin |

I have a dissability that keeps me from practicing my current accupation and I would like to make a good liveing still and belive I can succeed in realestaste if there really is a way with no money down help man tierd of dissability

You will not have to pay mortgage insurance if you break the loan up into an 80/20 piggy back loan. There are many ways to finance investment properties to 100% even with stated income. However you will have to have good credit scores and cash reserves of between 4-6 months (depending on the lender).

  1. 4 Responses to “is there really such a thing as no money down on buying realestate if so where do I find this place thank you?”

  2. By Ryan P on Sep 28, 2009 | Reply

    If your looking for an investement it is best to find a house that has enough equity in it i.e. A sales price of $75,000 and an appaised value of $100,000. this would give you a Loan to Value of 75% and enough equity to use the as your source of a down payment. The only thing you need is what’s called seller’s concessions. this weay the seller pays the closing costs, by incorporating the closing costs into the sales price. That way you have no money down.
    References :

  3. By Tracey M on Sep 28, 2009 | Reply

    Jerry,

    I have done some research into real estate investing and found that the no money down thing is largely a myth. Even if you were to find a lender willing to do a no down payment loan, there are still closing costs to consider. In a perfect scenario, you may be able to find a lender that offers no down payment and no closing costs or willing to roll the closing costs into the loan.

    Also, most lenders want to see lots of dough in the bank before they even finance an investor loan. I think one of the few ways, if not the only way, to do a no money down loan is with owner financing or lease/purchases (you sign a lease/purchase agreement with the owner and then turn around and lease it to a tenant for more than your monthly payment). However, unless you find an owner that is pretty desperate to rid themselves of the property, they usually want a few thousand (negotiable of course) up front. You can also look into an 80/20 loan (80% lender financed with 20% home equity line=100% loan) but, you will typically still have closing costs to pay.

    I went to my local library and checked out several books on investing in real estate. The only one that was good enough to make me go out and buy my own copy for future reference was Investing in Real Estate by Andrew McLean. It offers sound, practical, and detailed advice and stays away from the gimmicky no money down schemes. Good Luck.
    References :

  4. By ericalsmith2004 on Sep 28, 2009 | Reply

    There is a such thing as no money down, but not in the way you think. The only way to not have to bring any money in to closing is to get 100% financing and to get the seller to pay all your closing costs. However most lenders charge what’s called Private Mortgage Insurance if you don’t have 20% equity in your house (ie your house is worth 20% more than you owe the bank) which hellps cover them in case you don’t make your payments. There are lenders who don’t charge this, but most do. You’d probably be better off saving a little bit of money for a downpayment and closing costs.
    References :

  5. By lendermark1 on Sep 28, 2009 | Reply

    You will not have to pay mortgage insurance if you break the loan up into an 80/20 piggy back loan. There are many ways to finance investment properties to 100% even with stated income. However you will have to have good credit scores and cash reserves of between 4-6 months (depending on the lender).
    References :
    Mortgage broker and have financed several of my own investment properties this way.
    http://www.lendermark.com

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