Is it possible to purchase a home with no money down?
There is technically a way to do this, purchase with completely borrowed funds.
Down payment is required of at least 5% of the purchase price if the property is $500,000 or less. The down payment must
be 10% of the amount that is over $500,000. For example, if the property to be purchased was priced at
$700,000, the required down payment would be 5% of the first $500,000 plus 10% of the remaining
That being said, the down payment may be borrowed from your credit lines. You may be able to borrow
the down payment from credit cards, lines of credit or other types of credit loans. Therefore, as the
down payment is borrowed, you are technically purchasing with completely borrowed funds or no money
out of your savings.
This program is offered by select lenders and is insured through the major mortgage
insurance providers. This is known as the Flex Down program.
This may be a great option for borrowers who have a great income and credit but are having difficulty
saving due to high rental costs in today’s market. This can be a great way to get into the real estate
market and begin to build wealth.
Feel free to contact us for more details and/or to see if you qualify.
Victor Sodia and Taufeeq Rahim
Mortgage Agents Level 2