Does No Down Payment mortgages still exist?
January 24, 2025 | Posted by: Sherry Corbitt
Does “No Down Payment” mortgages still exist? YES!
Have you been curious about how the no-down-payment mortgages work when you don’t have the savings but want to get into a home? Here are the standard requirements (not all lenders offer this, so call me to find out what we can do for your situation first).
REQUIREMENTS:
- Minimum 650+ credit score (I can assess your credit score to see where you are and help give you tips to maintaining a strong score during this process).
- Minimum 2 trades for two years reporting on Credit Bureau (this means the lenders want to see your history of how well you handle debts in the last two years. A ‘trade’ can be a line of credit, credit card, car payment, etc. They want both of these minimum two debts to be two years old or longer).
- No late payments in the past 36 months
- Strong Employment History
- No previous bankruptcy or consumer proposal
We set you up with a Line of Credit or a credit card type loan and use 3% as a repayment marker. So if you had to borrow $15,000, we have to include that you can make a $450 payment per month on that debt vs. income you have. These are all details I will walk you through and explain your options. If you already have a line of credit or loan, then we can use that as the down payment if you meet the requirements above.
My goal is to help make your homeownership dreams a reality while still making sure you understand your options and can afford the choices you are making. Together we can make this happen!
Sherry Corbitt, Mortgage Broker
