Anyone ever get a zero down financing loan?

Question

Does anyone have experience acquiring a zero down loan for a single family investment property? If so, with who and was it a good experience?

Doug P. · Answer

@Dave Overall All the time, direct from sellers, very profitable.

Nate Sanow · Answer

Yes, several times with local hard money. Relationship with the lender as well as getting deals below 70% of value is the key.

Conner Olsen · Answer

As stated above you can get it with VA Loans and some USDA Logan’s but you have to be lender occupied. Banks used to offer this pre-2008 but the problem is if the value decreases at all and the owner can’t pay they’d have to cut a check to sell the house so instead they just walk away and get foreclosed on. Having 15-25% on an investment property is how banks keep that from happening again.

Wale Lawal · Answer

@Dave Overall

As the name suggests, a zero-down mortgage is a home loan you can get without a down payment. A down payment is the first payment you make toward the home, and it’s due when you close on your home loan. Lenders usually calculate your down payment as a percentage of the total amount you borrow.

The only way to get a mortgage through the major mortgage investors with no down payment is if you take out a government-backed loan. Government-backed loans are insured by the federal government. In other words, the government (along with your lender) helps foot the bill if you stop paying back your mortgage.The government offers guaranteed loans to people who need financial assistance when buying a home. This means that government-backed loans are less risky for the lender, and they can expand their usual loan criteria to people with riskier financial profiles, such as borrowers with no down payment.There are currently two types of government-sponsored loans that allow you to buy a home without a down payment: VA loans and USDA loans. Each loan has a very specific set of criteria you need to meet in order to qualify for a zero-down mortgage.You may want to get a government-backed FHA loan or a conventional mortgage if you find out you don’t meet the qualifications for a VA loan or a USDA loan. Both of these options will allow you to make a low down payment.

Good luck!

Eliott Elias · Answer

I've done a 3% down financing loan, offered 6% down on market and took my 3% commission and applied to to the down payment

Doug P. · Answer

Sure. Sellers are your best source of zero down financing. There's no qualifying and there's no limit to how many properties you can buy.

Stop thinking in terms of going to a lender to get the money to pay a seller. And starting thinking in terms of how to get in front of motivated sellers who want to GIVE their properties to you.

Darrick Ervin · Answer

As Marshall stated, the only 0% down loan is the VA option. Full disclosure this is on primary residences. But you can get creative in how you fund the loan. For instance you could use a down payment assistance program to cover the down 3% - 3.5% then you could negotiate seller concessions and lender credits(depending on how you qualify) to cover the cash to close. I've had client's purchase homes with little to nothing from their bank accounts. It's not as common but if you are willing to go the extra mile, it can be done. I've always seen at least 10% down on investments. Would be glad to advise if we have any investors that can accommodate. With rates rising lenders are getting creative and coming up with new products frequently.

- Darrick

Dave Overall · Answer

@Doug Pretorius

I'm not sure what you mean by that. Would you mind explaining??

Kenneth Garrett · Answer

@Dave Overall

I would say if you had a BRRRR investment by the time you refinance out, you essentially have a no down payment investment.

Anyone ever get a zero down financing loan?

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