No Down Payment Mortgages

Posted in General, January 2nd, 2007 |

No down payment mortgages are very popular. Why is that? The reason that no down payment mortgages are so popular is that you don’t have to have a down payment for a house or whatever you are mortgaging. This is ideal for those who are on a limited budget and can get you into a house quicker. However this does come with a pitfall and a huge one at that. You eventually will make up the down payment in your mortgage payment, or it will take longer to pay off the mortgage. This fact is what most people do not see.

I have bad credit. Will I be able to qualify for a no down payment mortgage? This is unlikely unless the creditor will be able to qualify you for a no down payment mortgage. This is totally dependent upon the creditor in question. Some creditors will let you have a no down payment mortgage, some however will not unless you have good credit. This is entirely the decision of the lender. It can be appealed, but usually the lender has the final say on this particular matter. The buck stops with them and if they tell you no, usually they mean just that. No.

I have good credit and applied for a no down payment mortgage. How long will this take to process? The time spent in processing depends on how long it takes to get the correct financial picture of the person that is applying for the no down payment mortgage. This could be anywhere from two days to thirty days, depending upon the weight of the financial situation of the application for a no down payment mortgage. You just have to be patient and wait. There is no sense in pestering the financial officer of the institution that you have applied to. This can sometimes lead them to say “No” instead of “yes”.

You do not want to antagonize the financial officer of the institution, especially if you may be doing business with them in the future. There is no sense in burning bridges, especially if there may come a time that you need those bridges. This is just common sense and showing a bit of respect at the same time. The financial officer has hundreds of applications on his or her desk. Pestering him or her is likely to cause them to refuse you credit.