NoMoneyDown

No Money Down Program

More Zero-Down Options Helping Homebuyers

(May 29) -- Because zero-down payment loans are riskier, lenders usually require borrowers to have some savings and a high credit score. However, a 100 percent loan offered by Freddie Mac could allow those who do not qualify for a traditional mortgage to become homeowners.

Eligible borrowers must have a minimum credit score of 620, a monthly debt totaling no more than 45 percent of their gross monthly income, and no late rent or mortgage payments within the past year.

While other no-down payment programs require three months of mortgage payments in the bank, Freddie Mac borrowers do not need to have any savings after the settlement. Borrowers must also read a "Home Buyer Education" booklet to learn more about homeownership and mortgages beforehand.

Source: Washington Times (05/24/02); Savage, Henry

Now you can purchase a home with no money down. You can actually borrow 100% of the price of the home. This is a great program for home buyers with limited savings.

Features include:

3% of closing costs to come from any combination of borrower's own funds, gifts, grants, unsecured loans, and other eligible sources.
No monthly payment reserve requirements.
Maximum total debt ratio of 41%.

Requirements include:

Minimum credit score of 620 required. Alternative methods if borrower has no credit score.
Available for purchase, owner occupied primary residences. One unit, including condos and PUD's.
Home buyer counseling required.

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