The professional staff at Team Mortgage Company knows that the cash required for a down payment and closing costs can often be a deterrent to new homebuyers. Fortunately, our expert lenders can provide you with alternative options for a mortgage loan requiring zero down at closing.

A Zero Down loan can help you finance your new home even when you don’t have enough cash to pay your closing costs and make a down payment. It is also used to avoid paying Private Mortgage Insurance (PMI) costs.

Zero down programs can allow you to buy your home sooner, instead of waiting to save enough for a down payment.

There are two options for Zero Down Loans:

• HUD HOME – Get one new loan at 100 percent loan-to-value (LTV). PMI is usually required, and the insurance charges are tax deductible.
• Rural Development – Get one new loan at 102 percent loan-to-value(LTV). PMI is NOT required.

Some zero down programs allow you to borrow 3 to 7 percent of the purchase price to pay your closing costs. Ask your loan officer if you qualify for any of these programs.

PMI is an additional charge you pay if you make less than a 20 percent down payment. This insurance policy protects the lender in the event of a payment default or foreclosure, and the loan is not paid off in full. The PMI payment ranges from 0.19 percent for a fixed rate loan with a 15 percent down payment; up to 1.09 percent with zero down; and as high as 1.34 percent on a zero down variable rate.

For more information about these popular programs and to see if you are qualified to take advantage of these specialized loans, contact Team Mortgage Company today or call us at 616.974.9710.