No down payment loans

We offer a couple of no down payment programs and the funds can be used for down payment and closing costs. On some, the second mortgage loan (the down payment portion) is repayable and on some it is forgiven. Also, there may be restrictions on quickly you can refinance your loan which may lead to missing a lower rate. Talk to one of our loan specialists today to come up with a customized solution that best fits your needs and budget.

Cost of a Lower/No Down Payment

Low or no down payment programs have some costs that may result in a higher monthly payment:

• Higher interest rates

• Higher mortgage insurance premiums

These programs have higher credit score requirements and may have lower debt-to-income limits.

Benefits of Lower/No Down Payments

Though the disadvantages of low down payments seem serious, there are also advantages. Take time to weigh the two and assess which is the best for you.

The chief benefits of lower down payment include the following:

• Less money out of pocket at the time of purchase.

• Higher rate of return. Your property’s appreciation will be the same whether you put 3%, 5%, or 20% down. In fact, your rate of return actually decreases as you make a larger down payment.

• Opportunity cost. In some cases, the smart investor can make more money from available cash by placing it in other investments.

During the first few years of the mortgage loan, the bulk of your monthly payments go towards paying interest – which is usually tax-deductible. So you get quite a bit of your monthly payments back at the end of the year in the form of tax deductions.

Personal Consideration

Carefully consider the amount of money that you want to put down. We will qualify you for a certain level based on your income; however, that amount may be different from the level that you feel comfortable paying each month. You must decide what you can afford.

Talk to your loan officer at Old West Lending, LLC about the best situation for you.