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Saving down payment can be very difficult for many people, especially in today’s marketplace. The 0 down payment program can make homeownership a reality.
In October of 2008, the federal government made significant changes to the “true” zero down mortgage. Yes, prior to this date you could purchase a home with literally “no money down”! Now that the government has changed the rules, what we are left with is a mortgage program that “mirrors” a true zero down mortgage…I will explain.
Yes, you can still get into a home without having a minimum of 5% down these days. By law, you need 5% down, so what some lenders are doing is providing the 5% down FOR you – in the form of a “cash-back”. Instead of providing the 5% cash-back to YOU at the lawyers (when you close the mortgage), they are providing it directly to the seller! What’s the catch? The catch is that you are faced with “posted” interest rates instead of the deepest discount on the market. Still…not bad! Showing the capacity of having the “closing costs” to a mortgage (1.5% of the mortgage amount) is still required with this form of zero down mortgage (cash-back).
Do you qualify?
Stop paying rent and start building equity today by contacting us!
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