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The truth about Zero Down Payment to buy House

August 13, 2022 | Posted by: Adarsh Chawla

No Money down Mortgages : How do they REALLY work?

Is it possible to Buy or invest in real estate without putting in your own cash? And even if it’s possible… is it a good idea? To answer that question, I’ve taken a closer look at a couple of the zero down payment loan programs to see what is really being offered, what the requirements are, and what some possible pitfalls may be.

Zero Down payment Mortgage

Example 1: Sagen ( Genworth)

Genworth’s program for those with high credit scores, stable employment ( Self-employed Not Covered), , excellent income and Credit score more than 680+

The funds to pay for the down payment can come from a variety of non-traditional sources such as personal loans, lines of credit, credit cards, and gifts from non-immediate family members.

The required debt service ratios are as follows: GDS 39%/TDS 44%. A critical factor to keep in mind is that the borrowed funds you use to finance your down payment must be included in the TDS calculation.

Example 2: (Pre-construction)

You bought Pre-construction condo 2 year ago for $500,000 and paid down payment (10%-20%)  and Condo is worth more than $600,000 and you need to close . You  can borrow up to 80% of their Now Appraised value which is 100 % Financing  ($500,000) and get back your paid Down payment to reinvest in Next Project.

If you do find a no down payment loan program, determine if it is a good option for you. The answer probably depends on why you need a zero down payment loan.

We have wide range of Mortgage lending Products with Banks, B lenders , and Private Lenders.
A and B lenders charge Excellent interest rates but you need to fulfil their criteria. (GDS/ TDS) and Stress test.
Private lenders are the most flexible lender for your Immediate Needs. They don't have Any GDS/ TDS, No Stress test. They will try to help you.
To discuss your mortgage needs call me :

Prime, Sub-Prime and  Private 1st, 2nd, 3rd Mortgages Specialist

Direct : 4162753965

Adarsh Chawla

Principal Broker ( FSRA # M10001794)

Any Income Any Credit Mortgages (FSRA Lic # 13448)


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