Home Buying in Seattle>Question Details

Lenn Harley,  in Maryland and Northern...

Are zero down home loans easily accepted by sellers in the Seattle area?

Asked by Lenn Harley, Maryland and Northern Virginia Thu May 17, 2007

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A competent listing agent will be able to read the rest of the story based on the rest of the details of the offer. The 0 down may not be the most important aspect to the seller - what is the closing date, etc.
1 vote Thank Flag Link Fri Oct 12, 2007
If there is more than one offer with similar offer prices, the zero down will not win out over someone with a downpayment.

If the zero down offer is the only offer, and it doesn't look like another offer is coming in the near future, the seller will likely accept it, but be cautious regarding their subsequent home purchase. The seller may ask for a longer post occupancy, so that they don't pack and move out until they are postiive the sale is going to close.
1 vote Thank Flag Link Sun Aug 12, 2007
Zero down loans these days will probably mean the seller is participating in a DPA program, such as Nehemiah. If there are multiple offers to consider, and the only difference is down payment, I would assume the seller is going to feel more confident in a transaction they feel has the best odds of closing. Down payment would be a factor, as well as having a strong preapproval letter from a qualified lender to go along with the offer.
0 votes Thank Flag Link Sun May 25, 2008
If it is an approved loan I don't see why it would be an issue. A loan pre approval is the same as cash essentially.
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Fri May 23, 2008
As always, it depends. It depends on the lender providing the loan, the strength of the rest of the offer and on the competition. In all honesty, I don't think there are any zero down loans left. Mortgage insurance (PMI) providers have changed their standards to require at least 3% down. Be sure you are working with a reputable, local lender. When I represent a seller who receives a low-down offer, I immediately call the lender to see how far along in the process the buyer is. Be sure you've submitted copies of all documents requested already (paystubs, tax returns, statements). Be sure the lender has already run your credit report. You can make your offer stronger by being willing to release your earnest money to the seller early. This transfers some of the risk to you instead of the seller solely bearing the risk of your loan not closing. The Nehemiah Program offers a great way for sellers to work with buyers who have little to put down. Check out http://www.GetDownPayment.com
0 votes Thank Flag Link Fri May 23, 2008
Yes. Most sellers understand how important it is to even get an offer. There are some who are a bit more picky--But they're still on market.
0 votes Thank Flag Link Fri May 23, 2008
I've found them to be workable. Most sellers are willing to do what it takes if they can get a full-price offer.
Web Reference: http://www.ziprealty.com
0 votes Thank Flag Link Sun May 11, 2008

The term "easily accepted" might be a stretch, but they are accepted in Seattle and as it has been stated below, a well written offer is key.

Usually with a zero down loan the buyer doesn't have a bundle of cash to throw down as earnest money, but this is one area where a buyer can show the seller they are sincere in making this purchase, thus the term "earnest" money. The earnest money can be used toward closing costs (usually 2-3% of the sales price) or, if you ask for the seller to pay your closing costs at the close of escrow, this earnest money deposit can be returned to you.

Other ways of making your offer strong are by keeping a short inspection contingency (you might want to schedule the inspection even before submitting your offer so you can demonstrate your sincerity to get the job done), short financing contingency, and a strong Certificate or Letter of Approval from a reputable lender.

Best of luck!
0 votes Thank Flag Link Sat Nov 3, 2007
I am not sure about Seattle proper, but south of Seattle they still are. I just make sure to be extra careful to keep financing contingency timelines tight and stay on top of the loan officer when I represent the seller. I do everything I can to make sure there are no suprises and we fund on time. Of course, when I was representing a buyer last month, the loan product they had in the works was disappearing 2 days before our scheduled closing date. We found this out after appraisal and before funding. So we bumped the closing up and it closed successfully.
0 votes Thank Flag Link Sun Aug 5, 2007
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