Working with lenders to set up a mortgage is a vital step in the home-buying process. Knowing your loan eligibility and how much you’ll need for a down payment is the foundation of expectation setting for buying a home in Denver. If you’re looking for a way to make setting up a mortgage even easier, a zero down payment mortgage can help you get a new home quickly!
What is a Zero Down Payment Mortgage?
A zero down payment mortgage is a home loan for which no down payment is required. Instead of paying a percentage of your total mortgage up front, you can take on a home loan for the full purchase price, allowing you to buy and close on a home with little to no cash in hand. A zero down payment mortgage has many benefits, but there are also a few things you should consider before choosing this method of financing.
It’s not difficult to see the benefits of a no down payment mortgage—it’s a mortgage that requires absolutely no down payment! Here are a few ways this type of mortgage may be extra beneficial for you:
Freedom for First-time Home Buyers
When buying your first home, you may not have as much financial flexibility as someone who has owned real estate previously and established themselves in the medical field. With a no down payment mortgage, you could be eligible to buy a home fresh out of medical school, loans and all!
No Need to Wait and Save
Whether you’ve been intent on buying a home for years or just decided to start looking last week, it takes time to build up a nest egg. But when you qualify for a zero down payment mortgage, you can buy a home without waiting until you’ve saved enough for the down payment. Get the home you want and need now, not when your savings account matches your buying desires.
More Flexibility with Your Offer
Navigating the real estate market in Denver can be very challenging. The more flexibility you have with your offer, the better. If you don’t have to make a down payment to get a mortgage, you may have more flexibility in your budget to be able to make more competitive offers that go above the asking price.
Cons of a Zero Down Payment Mortgage
While the perks of a zero down payment mortgage are nothing to scoff at, it’s important to know the drawbacks as well before you commit to one. Here are a couple to consider:
Higher Monthly Payments
Making a down payment—even on a mortgage that doesn’t require one—may still be beneficial in the long run. Since you’re not putting any money down when buying the home, this does mean that you will have a higher monthly payment.
There May Be Additional Qualifications for Eligibility
A zero down payment mortgage isn’t freely available to every home buyer. This type of loan is usually offered through specialized programs where you must meet certain criteria to apply. One common example is first-time home buyer loans (FHA loans) that are then paired with a down payment assistance program, which may allow for no down payment as long you meet the necessary criteria. Other programs may be designed for certain groups of people. For instance…healthcare workers!
How to Qualify for a Zero Down Payment Mortgage
Qualifying for a zero down payment mortgage depends on the program. These programs often have some unique qualifiers such as working in a specific field. They may also require you to meet an income threshold and have a good debt-to-income ratio. For example, MedicalPRO Home’s zero down payment program for healthcare workers requires a debt-to-income ratio of 45% or less.
Get a Zero Down Payment Mortgage with MedicalPRO Home!
If you are a healthcare professional in the Denver metro area, the best zero down payment mortgage is ready for you with MedicalPRO Home! Our concierge real estate services will help you find your dream home and buy it all through one program. Contact us today to find out if you qualify!