No Money for a Down Payment? No Problem!
There are 3 possible ways to go about securing money for a down payment. Needless to say, they all involve a good credit rating.
Some lenders offer a 'gift' of the minimum 5% down payment. So, all you need to save is the 1.5% closing costs. It requires you to take out a 5 year mortgage term at the lender's posted rate or a 7 year term with a .50% discount on the posted rate. The plus is you don't have to repay the 5% gifted amount as long as you keep the full 5 year term.
You can set up a lne of credit and borrow the 5% deposit as well as the 1.5% closing costs, so you won't need any cash at all. You'll be making payments to the line of credit in addition to your mortgage, but this way, you can choose from all the mortgage options and rates available; and you don't have to take the higher interest rate, nor a 5 year term. Quite often, the payments are lower with this option despite the fact that there are two products instead of one being repaid.
The Mortgage Group has access to lenders who will give you cash back that can be used toward your down payment. These products are offered at the lender's posted rates and can be a great way to help you get the home you deserve.
This is just a brief overview of your options. For more detailed information, please give Sarah Schiess with The Mortgage Group a call at 612 - 4498. She'll give you clear, precise information in a friendly, professional manner.