zero down mortgages

[Dad01]

Originally Posted by CLT4

Lenders offer Conventional 3% down loans with no income limits for borrowers with good credit and a low DTI. If you are already carrying a lot of debt, you may get denied taking on a mortgage with such a low down payment. You will pay Private Mortgage Insurance (PMI) since the loan to value ratio will exceed 80%. The subject property must be your primary residence and the loan amount must be conforming.

Side note: The average real estate agent commission paid by a home seller is 5% in California. It can be higher or lower depending on the deal, but with only 3% down... the day you move into your home you will have roughly 2% negative equity that would impact moving or selling the home in a short time frame due to job loss, needing to relocate for personal reasons, et. You'll want to make sure you have enough cash on hand after closing to be able to get out of the house if needed....

Isn't there a mortgage insurance i.e if yolu lose your job it will cover the mortgage

[CLT4]

Originally Posted by Dad01

Isn't there a mortgage insurance i.e if yolu lose your job it will cover the mortgage

Mortgage insurance covers the investors in your mortgage, not you. You are forced to pay it to protect the investors if you have a low down payment as you are more likely to be upside down. It doesn't avoid foreclosure if you default due to job loss or make your mortgage payments for you so you can keep the home.

[Dad01]

Originally Posted by CLT4

Mortgage insurance covers the investors in your mortgage, not you. You are forced to pay it to protect the investors if you have a low down payment as you are more likely to be upside down. It doesn't avoid foreclosure if you default due to job loss or make your mortgage payments for you so you can keep the home.

non-recourse loans though will protect your assets even if you lose the home right ?

[JGC97]

Originally Posted by Dad01

non-recourse loans though will protect your assets even if you lose the home right ?

Yes. A lender cannot go after other assets to recoup their loss.

[MechAndy]

Non recourse loans are not common for standard home buying mortgages.
They are more common for commercial/industrial loans.
They put the lender at a greater risk.
Borrowers need to have a very high credit rating to even be considered.
Commercial loans are at a higher interest rate.

The reality with loans is that there is no such thing as a free lunch.
I know 2 people (ex-co workers) right now that bought properties with nothing down and zero going to pay off the loan.
They did the finance by owner thing.
These were bare land properties.
They are paying higher than normal interest rates and will probably loose their properties because the 5 year mark of their loan in now due with a large balloon payment.
5 years ago they gambled that the property would continue to go up.
The properties are now worth less.

[CA4Now]

Originally Posted by Dad01

non-recourse loans though will protect your assets even if you lose the home right ?

Do you live in California now, or are you still in Illinois?

https://www.city-data.com/forum/cali...s-medical.html

[gizmo980]

Originally Posted by CA4Now

Do you live in California now, or are you still in Illinois?

https://www.city-data.com/forum/cali...s-medical.html

Oh geez... that thread is hilarious.

https://www.city-data.com/forum/61379676-post16.html

And based on some of the other comments there, it's possible we're being trolled.

[evening sun]

Originally Posted by Dad01

non-recourse loans though will protect your assets even if you lose the home right ?

Well if you have some assets, why not use them to make a downpayment?

[Dad01]

Originally Posted by evening sun

Well if you have some assets, why not use them to make a downpayment?

why ? I'll never see that money again

[Dad01]

Originally Posted by CA4Now

Do you live in California now, or are you still in Illinois?

https://www.city-data.com/forum/cali...s-medical.html

In CA now
I contacted many lenders and they all say loans here are non-recourse thank God
but thanks for checking