Joyce Virtue, Broker Associate
Five Diamond Properties
Ca Lic 01155911
Heather Paul, Realtor
Have a great day,
Heather Paul, Realtor
Correct. No Down Payment. Closing costs though. Buyer will have to pay for some closing costs.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate Broker License # 01312992
Just a thought, have you gone through your finances to see what price range or monthly payment you can afford for a home? And, remember to add something for HOA fees, if a condo, property taxes, programmed and general maintenance and repairs, insurance. If you find a home that, on the surface, looks like you will have the same monthly payment, or even a tad less than the rent you are paying now, you need to stop and review things.
100% financing will mean that you actually have no financial stake in the house itself, when you buy. Yes, you will have other costs and expenses to make the deal work, but it's really very risky to do it this way, and is part of the reason our housing market is in the mess it is today. If you would need to buy with no cash down, it might be a thought to continue leasing for a year while, as you build up financial reserves.
Home ownership is truly a wonderful thing - and when it comes with manageable finances and monthly out go, it's even definitely worth it.
100% financing does mean nothing down, but it doesn't necessarily mean no money out of pocket. There are closing costs with a purchase and a loan. Closing costs can be as much as 3% of the purchase price, but there are ways to address these too.
Sometimes the seller will agree to pay the buyers allowable closing costs. You need to establish an amount and include this on your offer.
You can ask the lender to pay the closing costs, however this happens by increasing the interest rate so you are actually paying them over time.
As others have said, 100% financing is not very common today. VA and USDA are the two national plans that I'm aware of, but you must be a veteran or purchase a home in a rural area and meet the other income qualifications for USDA.
Talk to a local lender to see if there are any local or state programs available and see if you qualify for any.
Yes that is what it means. However 100% financing is practically obsolete these days unless you are using VA financing. There are some lenders that I have seen still offer 100% financing depending on the borrower and there are specialty programs out there. The best place to find the information that is pertinent to YOU borrowing is to speak with an accredited lender in your area and start figuring the options available for you individually.
Best of luck!