I found this article on 100% financing that i thought was interesting. However, this financing is for owner-occupants, so this can help you sell your properties as long as the buyers have good credit. Charlie
100% real estate financing
Investing in real estate can be a very expensive deal. Lenders usually ask for a down payment to provide you with a loan to complete your real estate deal but this down payment can be at times difficult to arrange for. However, under certain situations getting a 100% real estate financing is also possible where you do not have to pay any money down.
These 100% real estate financing programs help people get a loan without making any up front payments for the down payment. If you wish to make a real estate deal for $500,000 then your 100 real estate financing would be the entire amount $500,000.
This type of financing option is also called as no money down mortgages and also zero down mortgages. Here we will be seeing how can you qualify for such financing options and what are the advantages of these loans.
Qualifying for 100 real estate financing
The first thing required to get a 100% real estate financing is a good credit. Having good credit can not only help you in securing this type of financing but also help you in getting good rates and terms on the loan. Before the lender offers you the 100% financing he would look into your financial status to make sure that you are a trustworthy customer. Besides this he would also check your debt levels, debt to income ratio, employment history, value of your assets, loan to value ratio, etc.
Getting a 100% real estate financing is similar to getting any other type of financing. If the lender is convinced that you are a trustworthy borrower then half of your problems are solved. The other steps of the 100 financing is similar to the normal mortgage procedure.
Though the deal of a 100% real estate financing sounds to be good but these types of loan are not provided to everyone. The lender would always try to minimize their risk by earning the dollars. This is the reason why the qualifying criteria for these types of loans are a bit stringent as compared to other mortgage types.
Advantages and disadvantages of these loans
As most mortgages, even the 100% real estate financing has its pros and cons. The main advantage of these loans is that you do not have to put in any money from your side. The lender provides you with 100% of the required amount as your mortgage deal. The other advantage is that the monthly payments with these loans are almost same as the rent payment. So instead of investing your money you would be buying the property.
However, with these loans the lender might ask you to put a security or some kind of property as collateral against which the loan would be given. This involves a risk that if you are unable to pay monthly payments on time they can take possession of your property without prior information.
In case you have pledged a security (e.g.: bond or stock) and if the lender finds that the security used has lowered in value then he can ask you for more security to cover the loss. The interest rate applicable on these loans is another disadvantage. The risk associated with these loans is anytime higher as compared to other types of mortgages.
Where can you apply for these loans?
The 100% real estate financing option has become a very common. Most of the mortgage lenders these days are providing this option. If you are looking for such a mortgage then you can approach any of your known lenders.
In case they do not have any such offer then you can try approaching a mortgage broker who can guide you on these loans and also help you in qualifying for a good loan option among his network of lenders.
Some of the lenders and brokers that help people with these loans are mentioned below.
They offer 100% mortgage financing. You can apply for their loan online and also get a pre-approval. You can contact them at (800) 922-6267, Monday - Thursday: 8:00am - 10:00pm ET; Friday: 8:00am - 6:00pm ET; Saturday: 9:00am - 6:00pm ET.
Commercial Mortgages: http://www.commercialmortgageyes.com/
They offer 100% mortgage financing for both commercial and residential properties. You can contact them at 1421 Sheepshead Bay Rd, Suite 255, Brooklyn, NY 11235 ; Office: 1- 718-791-3333, Fax: 1- 718-504-6203.
Ameristar Mortgage Corporation: http://www.ameristarmadison.com/
They offer 100% mortgage financing for people in Wisconsin and Illinois. You can get a pre-qualification with them. Contact them at 5325 Wall Street, Ste. 1500, Madison, WI 53718; Phone: (608) 242-0826, Fax: (608) 244-5850, e-mail: firstname.lastname@example.org
Alliance Mortgages: http://www.alliancemtg.com/
They offer provide 100% home mortgage loans and 80/20 home loans with no money down 100% financing with 600 fico scores. You can apply for their loans online. Contact them at Alliance Mtg Inc., 18000 Studebaker Rd Ste 700 Cerritos, CA 90703.
Wells Fargo: https://www.wellsfargo.com/
With them you can get a real estate financing with little or no money down. They offer a number of traditional and flexible options. You can contact them at 877-937-9357 ; M-F, 7 a.m. to 11 p.m., CT, Sat., 8 a.m. to 4:30 p.m., CT.
GMAC Mortgage: http://www.gmacmortgage.com/
They offer no down mortgage loans at affordable rates and at minimal private mortgage insurance premiums. You can contact them at 1.877.941.4622 for more details on their mortgage processing and offers.
Quicken Loans: http://www.quickenloans.com/
They offer no money down mortgage loans. You can contact them at 20555 Victor Parkway, Livonia, MI 48152 OR at 1500 W. Third Street, Cleveland OH 44113-1422 OR at 16425 N.Pima Road, McDowell Mountain Park, Building A, Suite 200, Scottsdale, AZ 85260 ; phone: 800-251-9080.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125