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Florida No Money Down Home Financing
Nationwide offers zero down home financing, second mortgages, home equity & 100% purchase loans for primary, 2nd homes, and investment property transactions. Buying a second home or vacation property has become very popular, with residents from New York, California, Virginia and Georgia making the transition to own Florida real estate.
Get updated interest rates for 1st and 2nd home mortgage rates. Choose from fixed or variable interest rates for purchase or refinancing.
- 100% Mortgage Refinance
- 90% - 2nd Home Loans
- Interest Only Payments
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By Maria Ny
At one time, about the only way you could get a no money down Florida home loan was if you were in the military or a military veteran. Now, no down payment loans have hit the mainstream market. Currently, less than half of all homebuyers put down the standard twenty percent. Among first time homebuyers, less than half put ten percent down, and nearly thirty percent of homebuyers financed the total purchase price of their new home.
Florida home buying and financing a second home in Florida is now much easier with the many 100% 1st mortgage loan programs available to home buyers. Although your chances of securing a zero down payment loan are better when you have good credit, there are an increasing number of lenders offering no money down home loans to buyers with less than perfect credit.
The one caveat of no down payment loans: you need a second mortgage with your purchase or you will have to pay mortgage insurance, also known as private mortgage insurance (PMI). PMI can get pretty expensive, especially for borrowers with bruised credit and those getting jumbo loans (non-conforming loans above the 2006 Fannie Mae and Freddie Mac lending limit of $417,000). According to Holden Lewis (BankRate.com), the cost of mortgage insurance varies depending on the size of the down payment and the borrower's credit history. It can be expensive, so the mortgage industry devised a way around it: piggyback loans.
Piggyback loans are also known as 80-20 mortgage loans because you're typically getting a 1st mortgage for 80% of the purchase price and a 2nd for the 20% remainder. There are many variations of 80-20 loans, depending on how much cash reserves you have for a down payment, your FICO credit scores and your financial situation. Some people are able to come up with 5%, 10% or 15% of the down payment, so they may get an 80-20 loan for the part they can't come up with. And, like other mortgage loans, there are fixed interest rate loans, adjustable rate loans, interest only and jumbo loans. Your lender can easily work out a loan that best suits your budget and needs.
There are also federal, state and local government down payment assistance programs. Some don't even require you to repay the money you get. Check with your local Department of Housing and Urban Development (HUD) office and city redevelopment agencies for more details.
If you can afford the anticipated monthly mortgage payments, but just lack the cash reserves for the down payment, you can still buy your dream home or second home.
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