How do the "$2,500 Cash out-of-pocket" - and "$0 Down" Loans Work?
There are THREE basic loans that most renters and home buyers can
1. $2,500 "Total Cash" FHA 30-Year Fixed rate
2. $2,500 "Total Cash" Conventional 30-Year Fixed rate
3. $0 Down Conventional loan
The easiest loans to qualify for are the FHA (Federal Housing Authority)
loans. FYI - on a $400,000 loan, you'd need a 3.5% Down Payment - or
$14,000 with a 580+ minimum credit scores. In the middle column on
the chart below, you can see your payments.
But, with a 620+ credit score, you can qualify for the same FHA loan, but
eliminate MOST of that $14,000 down payment!!
1. The $2,500 "Total Cash" Down FHA 30-year fixed rate loan - is the 'same' basic FHA loan, but you need a 620+ minimum credit score PLUS your annual household gross income must be below $120,100, to qualify for this $2,500 down program. The $120,100 is $10,008 per month income. Please call me at 303-622-5700, and I'll explain this FANTASTIC loan program, saving you $13,000 cash out-of-pocket on a $400,000 home!!
The monthly payments are listed in the far right column:
2. The $2,500 "Total Cash" Down Conventional 30-year fixed rate loan - yes, only $2,500 down payment! You'll need a 620+ minimum credit score PLUS your annual household gross income must be below $120,100, which is $10,008/month to qualify for this cool loan. The payments are VERY similar to the FHA loan in column 3, but the mortgage insurance can be $100 less per month.
3. The coolest new $0 Down loan is a $0 Down Conventional loan which requires a 700+ fico score and debt-to-income ratios up to 43%. This new loan from offers the standard 3% down payment as an "assistance" or second loan at a slightly higher interest rate. The 97% fixed rate 30-year first mortgage loan and an interest free second mortgage for up to 3% of the total loan require NO down payment! The two loans work together to equal 100% financing for your first home. The payments are in column 1 above.
The term P.I.T.I - is the total house payment with Principle, Interest, Taxes & Insurance. In the chart above - you would need to ADD in the monthly taxes, insurance, mortgage insurance and HOA - if any.
Also - if you choose a loan with a Down Payment - that money can come from your savings, 401k's - or even a 'gift' from your Mom & Dad, Grandma & Grandpa, brother and sisters, or even your employer.
It’s very likely we can go out “house shopping” with you only needing about $2,500-$3,000 cash out-of-pocket to close on a beautiful home under $450,000, as I'm typically able to have the Sellers pay your closing costs & loan pre-paids. I would say that about 80-85% of ALL the home sales I’ve done for renters and first time home buyers SINCE 1999 – this was ALL the money they needed to BUY a home. Let’s discuss YOUR specific renting/home buying situation right now. Simply call me – and we'll get going turning you into a home OWNER instead!
“$100+ Million Personally SOLD/Closed Since 1998”
p.s. - With the 7-10% or so increases in Denver Metro area home prices over the last 3-4 years - most nice neighborhoods keep pricing renters out of buying homes! Quit procrastinating and CALL ME – I’ll help you get finally get “APPROVED” to buy your home - instead of paying your Landlords mortgage loan.