No Money Down Mortgages

Scaring up a down payment is a difficult task for many in this tough job market. With a good credit history, limited liability, and three years’ proof of employment, you may qualify for a no-money down mortgage, freeing up money for closing costs.

The federal government is bringing back the days of 0% down in an effort to revive the housing market. With a program that began in May 2009, the Federal Housing Administration (FHA) will direct funds for buyers who haven’t owned a home for three years or longer, making them eligible for an $8000 tax credit. No money down mortgages can be risky, as your monthly mortgage payment will likely be higher to compensate for the lack of a down payment. With this type of mortgage, most lenders will also make you to pay for private mortgage insurance.