
Many people believe that to buy a home with a conventional mortgage, they must put 20% down. That is not the case; with the right qualifications, conventional mortgages can feature lower down payments. But McGowan Mortgages offers a special program you will not find everywhere: the chance to buy a home with a conventional loan with zero down payment.
How Zero Down Conventional Loans Work
This is how we make it possible for you to purchase a home with a zero down conventional loan:
- You take out a conventional loan as your primary mortgage, meeting the loan-to-value requirements.
- We provide a second lien mortgage. The amount of this mortgage is 3% of the purchase price up to a maximum of $15,000.
- You start paying on your primary mortgage. During this time, you do not have to pay anything on the second lien mortgage. It also does not accumulate any interest.
- Once you pay off the first lien mortgage or it is refinanced, the second lien mortgage comes due. You then start making payments on it. So, to put it another way, you are deferring the payments on the second lien mortgage until after you have finished paying off the primary mortgage, without any interest charged on that second lien loan.
Is a Zero Down Conventional Loan Right for You?
- The minimum credit score to qualify is 620 if you are at or below 80% of the area median income.
- If you are a First-Time HomeBuyer with 700+ credit, you also qualify.
A zero down conventional mortgage allows you to purchase a home right now without having to save up for a down payment. It can make the difference between having to wait, or having the chance to move into your dream home immediately.
Conventional mortgages are straightforward and easy to apply for. They are flexible and can be tailored to your needs. You can pick a loan term that works for your budget and timeline, and choose either a fixed or adjustable mortgage rate.
I can discuss conventional zero down loans as well as other mortgage options with you at your consultation, and help you choose the type of loan that is ideal for your individual scenario.
Buy a Home with a Zero Down Conventional Mortgage
If you are excited to move into a home with a zero down conventional mortgage, we can make it happen. During your consultation, we can explain more about our zero down conventional mortgage program and answer any questions you have. If you are ready to move forward, we can begin the application process.
We can help you buy a home in Kansas City or anywhere in MO. To get started, please call (816) 631-9687.
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