 Minimal Down Payment for Home Purchases
Did you know that you can obtain financing for a Home Purchase or a Rate & Term Refinance in many states even if you have minimal credit history? Trusted Mortgage Professionals can even help you finance up to 97% of the home's purchase price and wrap the closing costs and fees into the loan. How does a mortgage company do this? Professional loan officers are trainedon a variety of programs, some of which are offered by local municipalities or the federal government to encourage home ownership and are not available by all lenders or brokers. Many of these programs were created especially for First-Time Buyers, Recent Immigrants, or people who for one reason or another have not built a traditional credit file with the three major credit bureaus. Have you been turned down because you don't have any credit history at all? In order to secure up to 97% financing for homeowners under this special program, a loan officer may have to build what is commonly referred to as "alternative credit". Alternative credit is built by showing a 12 month payment history for services that are not commonly included in a bureau credit report. If you have had a cell phone, power bill, cable bill, local car payment, or other service related account with 12 months of history (even if you paid in cash), you may be able to buy a home with little money down. To establish alternate credit, all your loan officer has to do is verify with the account holder and creditor that you have been paying on time for 12 months for four different accounts. Cancelled checks may be necessary. Once the information is verified, the loan officer will build a credit file for you with a major credit report supplier, and complete the rest of the paperwork for your mortgage loan.
If you have any four (4) of the following, you may qualify: - Cell phone
- Local Telephone Service
- Electric Bill
- Cable Bill
- Water Bill
- Sewage Bill
- Gas Bill
- Trash Collection
- Internet Access Bill
- Rent (Private Individual OR Management Company)
- Car Payment
- Auto Insurance
- Health Insurance
- and more!
All you need are four (4) accounts that have been paid on time for 12 months, and a trained mortgage professional may be able to build an alternate credit file for you to buy a house with low down payment. Closing Costs could even be minimal and might be wrapped up into the loan!
To see if you qualify for one of these programs, start your application below.
|
Purchase 
