Zero Down Ideas

I recently posted my story of selling a rental property for $1000 down, and it occurred to me that the buyer may have just put the downpayment on a credit card. Paying the minimum would mean adding only $25 per month to his costs.

It got me thinking back to all the zero-down books I’ve read,and I would like to ask any of you for any other ways to buy with zero down. I want to put a list of ways on my site. Thank you in advance for any ideas and examples.


Here is a way using tradional financing:

some lenders offer 100% financing these days on investment properties. You can financing closing costs by negotiating to have the seller pay your closing costs. Additionally, if you can swing it, you can negotiate for the seller to pay for points to buy your rate down.

rbaxter is right. Depending on your credit situation there are 100% loans available for investment /N/O/O properties.

I am working with a client who will purchase a property with zero out of pocket due to seller concessions.

This may sound stupid, but if you are negogiating a deal can you just take whatever % the closing costs would be of the purchase price and subtract them from your ARV, your rehab costs,etc., then just use that $ at closing to pay for the closing?

What I’m asking is if you are presenting to someone as a no real estate agent, no fees, no commissions, you-pay-for-nothing I buy houses operation, what is the way to ask the seller to finance the closing costs?

So this is possible then eh? Does it matter what state the person lives in? The reason I ask is that I have worked with 4 different mortgage brokers who all tell me that 100% loans are too hard to get. This puts a cramp in my goal because I only have 50k capital to work with and I will run out really quick dumping 10% down everytime I buy a property.

Without any knowledge of your individual situation I would say that the brokers you have worked with don’t know what they are doing when it comes to that type of loan. I see offers for 100% NOO all the time. Have never tried to get one so perhaps actually getting it is another thing.

Look for a broker that actually deals with investors. Better yet, find one that IS an investor.

80/20 Loans or 100% Loans for Non Owner Occupied properties are everywhere now. Wholesale lenders are getting more aggressive everyday. They got used to the 3 Trillion in Loans in 2003 and are not liking the lower volume so they are getting creative just like the investors are. ie… option arms…you pick your payment, Interest only on many fixed rate loans… I could actually see wholesale lenders coming up with programs that we have not even thought of yet just to keep the volume turning.
Good Luck

The main hurdles of qualifying for the 100% NOO loans are meeting the fico and reserve requirements.

Howdy Immy:

You may want to add the closing costs to the sales contract and get the seller to pay them. The ARV will not be affected by the closing costs. I have gotten back money at closing because the seller paid some of my costs plus I git credit for his taxes that were not due until Jan.

zachj is right. The qualifiers for N/O/O loans are fairly strict and high. However, Lenders are starting to loosen the purse strings.

You need to find a good broker that has access to a variety of Lender’s and has worked with investors for awhile. He/She will know what lender to take your individual scenario to or at least tell you the best case scenario, based on your parameters.

You can finance 100% of the purchase price on an investment property as a stated/stated (no income verification, no asset verification) with up to a 2% seller concession for closing costs if you have a 680 mid-score. Your middle of the three repository credit scores is used.

there are ways to get 100% like mortgages with out getting a 100% mortgage

Look at some of my old postings and you can also get 100% deals with Seller paid grants and city grants to your buyers.

Do not just think that you have to get a 100% loan just to get a 100% deal

go to this thread for more ideas;action=display;threadid=4002