Atlanta Mortgage News

LOAN THIS MONTH: CAN I PURCHASE WITH NO MONEY? 

Read time: 48 sec

 

My client thought the best program would be the USDA loan which requires no down payment, but the USDA program looks at household income, not borrower income, so they were quickly disqualified.  Instead, by working hand in hand with some awesome sellers, we were able to offer my client a FORGIVEABLE second mortgage at ZERO interest for three years with NO payment and no funds at closing. They paid for an appraisal and credit report only. Sound too good to be true?  It’s not!

Here are a few guidelines

  1. The program is either FHA or Conventional for the first mortgage.
  2. The down payment assistance is between 3-5% of the sales price.
  3. The minimum credit score is 600.
  4. The seller can contribute 3-6% of the sales price for closing costs/taxes/insurance.
  5. The second mortgage is a Soft/Forgivable Second.   If your income is higher than 115% of area median income, you can get a ten year loan at no interest.

If this sounds like something that *might* work for your purchase in Georgia, let’s brainstorm as to whether you're a fit.  Send me a text or call me at 678-467-2330. Elizabeth Washburn


Posted by Elizabeth Washburn on October 27th, 2021 10:45 AM
Posted by Elizabeth Washburn on September 23rd, 2018 7:37 PM

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