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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

California Home Mortgage Lenders Offer Zero Downpayment Loans

If there is one thing that a mortgage lender San Jose California can tell you, it is this: it is now easier than ever to buy a house. The biggest deterrent to home ownership has always been the down payment, as any mortgage lender San Jose California knows. Until recently, it has been standard practice for any mortgage lender San Jose California to require a down payment equivalent to 20 percent of the purchase price. Few people have this much cash, and because of this, few people are able to avail of loans from a mortgage lender San Jose California.

According to the National Association of Realtors, however, it is now possible to buy a home with zero-down payment. But mortgages like these are not granted by operators who take on 'no documentation' or 'bad credit' loans in exchange for abnormally high interest rates. Instead they are but by a duly licensed mortgage lender San Jose California. All you need to benefit of these zero-down programs is decent credit rating. So what exactly are these programs that require no down payment? A mortgage lender San Jose California will offer 100% Financing if you have a credit score of above 580. Indeed, you can find a mortgage lender San Jose California that will offer you 100 percent financing. On the other hand, should your credit score be 620 or higher, probably any mortgage lender San Jose

California might let you qualify for loans that cover 103, 104, or 107 percent of the selling price. The percentage in excess of 100 percent will go towards payment of closing costs, as a mortgage lender San Jose California well knows. Fixer-upper Loans Check with your state's Department of Housing and Community Development as a mortgage lender San Jose California. Find out what their policies are towards fixer-upper loans. A fixer-upper loan is typically granted by a mortgage lender San Jose California to people who choose properties that meet two conditions: either if they require major renovations or if they are located in neighborhoods targeted for community revitalization. Maybe you won't need a mortgage lender San Jose California because many sellers are in a rush to sell their homes, and you can use this to your advantage.

This is because sellers who are unable to find buyers for their properties will go through extra lengths to help you purchase them. The wisest thing to do, in this case, is set up a lease purchase agreement in which you sign a contract agreeing to buy the house at a set price after a year or two and this way you won't need a mortgage lender San Jose California at all. If you are a veteran or are presently in the military, it's easy for you to avail of a no-down payment loan with the Department of Veteran Affairs as a mortgage lender San Jose California.

You may check out the department's list of authorized California home mortgage lenders online. The government has plenty of grants given to homeowners to reduce the current home ownership gap. Though these grants are not widely known, they are easily available especially to mortgage applicants with low incomes. You are advised to visit the website of the Department of Housing and Urban Development for a list of the different home ownership assistance provided by non-profit groups. These zero-downpayment programs have flung the doors to home ownership wide open. Today, people with good credit scores but little cash have fewer obstacles to hurdle in getting decent housing. You could be one of them, too.

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