A Brief Overview on Zero-Down Payment Mortgage Plans

A home mortgage loan is one of the things that have to be secured before one can purchase a home or a real estate property. There are different forms of mortgages offered by lending companies which require the borrower to dole out a down payment on the property they are interested in buying. However, there is now what called the zero down payment mortgage plans that could now be enjoyed even by those who are not war veterans.


Actually, zero down payment plans have been around for decades but were only offered to soldiers. Fortunately, this is no longer the case and now the regular American can apply for this plan and it is getting more and more popular as people learn about it. The loans cost lower and obviously, as the name implies, does not need a minimum 30% down payment which the borrower has to shell out.


However, just like the regular home loan mortgage, there is a 3.5% fee calculated from the total loanable amount that will be directed towards the funds that support this program. Other than this, the fee is placed in the mortgage itself to support the zero down payment loans.


The usual requirements are needed to be submitted of course, just like any other regular loan, and this includes the credit standing of the borrower. If that is poor, there is no chance the loan would be approved. But other than that, the processing is fast. It is best to seek out more information from the local bank to see if they offer this type of mortgage within the area.


The loan is a great help for those who live in rural areas. Usually a rural area would be a place with a population of more or less 10,000 residents or small cities with about 25,000 residents. The families awarded this loan should have an income lower than 80% of the local median. On average, an amount of $112, 000 can be awarded to the applicant.