Can you still get a mortgage with Zero down ? The short Answer is yes and it makes financial sense. Here are the details..
Purchase Details:
$300,000 Purchase price of home
$15,000 Down payment borrowed (From any major Bank) Term loan of 5 years at 7.5% at $301 per month
Payment details:
$1402 monthly mortgage payment
$301 monthly down payment loan payment
$1703 Total payment per month
Qualifying Details:
Your credit score(s) is/are 680 or higher
Your income to debt ratio is 44% or lower - Total debt service ratio (TDSR)
Calculating your Total Debt service ratio:
Add all you monthly payment obligations
Month payments for, New Mortgage + New Property tax + Credit cards + Loans/Lines of credit + Car payments
Divide the total by your Gross monthly income (income before taxes taken)
Example : Total monthly household payments $2600
Total monthly household gross income $6500
$2600 divided by $6500 = .40 or 40% TDSR
(This scenario qualifies for Zero down mortgage)
Contact your Real estate professional today to see if you qualify !
Joshua Rees Realtor/Mortgage Advisor 306-209-7483