Financial Trend Blog

No money down mortgage loans enabled more people to own their own home. The following ways will help you get approved for a home loan online with zero down.

Good Credit Ratings

Mortgage Loan

In order to qualify for a zero down mortgage, you need to have good credit. The high-risk of having zero down make many mortgage lenders picky about late payments. Typically, after three years of perfect payments and a FICO score of 600, you can qualify for a zero down mortgage.

Money Factors

Zero down mortgage loans are a higher-risk for mortgage lenders, so they like to see higher cash reserves of applicants. Mortgage lenders also like to see a low debt to income ratio, so pay down short-term debts like credit cards. Additionally, a long employment history proves you have reliable income, a desired trait by mortgage lenders.

A lot of new home owners are finding it extremely hard to pay off their mortgage loans. Of course this is understandable considering the hardships of the past year or so when the world was going through a debilitating recessionary period. Fortunately the government has recently introduced the mortgage principal reduction program to assist mortgage loan borrowers in avoiding foreclosure.

When you work with the Bank of America to have your loan agreement modified there are a variety of options that are implemented in order to achieve a reduction of the amount of money you owe. Generally the bank will reduce the mortgage balance to 100% of the value. This reduction makes life a lot easier for people whose balances were well above the 100% mark, so this is a wonderful initiative.

Obama’s government has come up with home refinance stimulus package and loan modification programs to help all the needy owners in avoiding foreclosure. This program is designed specifically for all the borrowers who are facing financial hardships as they are not in a condition to repay the loan. The home refinance stimulus package and loan modification would cover as much as 9 million mortgages and the government would spend billion for helping the homeowners.

Obama’s Stimulus Package has 2 main components:

Mortgage Loan

1. Refinance

2. Loan Modification

Let us discuss each one of these components in detail:

1. Home Refinance Stimulus Package

Getting an FHA license can be a bit complex so it’s good to know what steps you will need to take to get the license. Obtaining your FHA approval takes a bit of hard work and some financial investment, but it’s time and money well invested. Given the tightening of available mortgage products to persons with less than perfect credit or with more limited equity in their homes, FHA loan products are a great source for new loan origination business in this ever changing mortgage market. You really need to be FHA approved to push your mortgage business to growth and prosperity.

If you intend to acquire a bad credit home mortgage loan, here are some facts that you should know.

You probably are defaulting in payment for your current home loan and your property may be on the verge of foreclosure due to the default in payment. You may have a very bad credit rating. What you need now is definitely a bad credit home mortgage loan to assist you.

Mortgage Loan

If you have a bad credit history, it will be definitely difficult to acquire a home refinancing loan. If you really are in desperate need to acquire such loan to save your house from foreclosure, then the below details will definitely be useful to you. Continue reading to know more.

When I first started in the mortgage business, at least one in four of all of my buyers got an FHA loan. The rates were fantastic, the down payment requirements minimal, and the credit requirements were close to meaningless. Most first – time home buyers got an FHA loan.

In the last three years, over 600 families have trusted me with their home loan needs. Of those 600, I did a total of two FHA loans over that time. One in 300.

Mortgage Loan

I wasn’t alone. FHA guaranteed less than 5,000 loans in California last year. In 2003, they did over 100,000. A 95% decrease in demand. Nationally, FHA loans are down 50% from a few years ago.

In an attempt to rescue its millions of home loan borrowers from loosing their home to foreclosure Citigroup has launched, Citi mortgage loan modification program for it’s borrowers. The program is called the Citi Homeowner Assistance program. Launched on November 11th,20008 the loan modification program not only seeks to help delinquent home loan borrowers who are behind in the scheduled payments, the program also attempt to proactively help the home loan borrowers who are anticipating a financial hardship that can effect their ability to pay the mortgage.

The Citi mortgage loan modification services lower the mortgage payment within an affordable reach of the borrower. The terms of modification can comprise either or all of following:

Sub-prime lenders now offer financing packages with zero down. Interest rates are higher on these types of loans, but they make purchasing a house easier. And unlike a conventional loan, there is no private mortgage insurance required. There are two types of zero-down mortgage packages, each with their own requirements.

Types Of Zero-Down Loans

Mortgage Loan

100% financing, as it names implies, offers complete financing of your property. The other option, 80/20, finances your mortgage with two loans. Both loans may be carried by your lender, but sometimes the seller or a second lender is required to carry the 20% mortgage.

100% financing is easier to deal with, but not all lenders will offer this type of home loan. 80/20 financing is more common, but takes some negotiation if the seller is involved.

Everybody has seen the advertisements for companies offering no closing cost home mortgage loans, but are they real? Is it really possible to avoid paying closing fees all together? Some experts agree that it may be a good deal, but buyers should really understand that a no closing cost home mortgage loan isn’t for everyone and that there are fees that have to be paid, no matter what. It’s all a matter of when the buyer will pay them.

Even when you already have a first and second mortgage on your home, you may want to secure a third mortgage. You may use the cash for some value-adding feature to your home, like a swimming pool or a new kitchen may be the reason. However, securing a third mortgage is not very easy.

A third mortgage loan stands subordinate to the first and second mortgage liens that exist. For this reason, it is very difficult to find lenders offering third mortgage home loans. The risk is much greater for the lender in case of a foreclosure. If the loan does get approved, which is difficult, it would be at a much higher rate of interest as compared to the earlier mortgages.