Please light up my brain on no-money downs ! - Posted by Michel

Posted by Michel on February 09, 2001 at 10:30:26:

Where are you located and do you make deals in North Texas?

Please light up my brain on no-money downs ! - Posted by Michel

Posted by Michel on February 08, 2001 at 16:24:20:

Hi!

I’m still missing something here.

Let’s say I purchase a home for $100,000. The seller is willing to carry a second mortgage of $20,000. So, technically the first loan would be carried by a morgage company at 80%. So far so good. How can you get around not having to pay the escrow and closing costs to make a 100% no-money down deal?

Can someone help me here?

Thanks!

Re: Please light up my brain on no-money downs ! - Posted by Dallas P. Allbritton

Posted by Dallas P. Allbritton on February 08, 2001 at 17:12:30:

There are a number of ways to make this happen:

a. The seller agrees to pay all closing costs or to a certain %. Most lenders will allow 3-6% and some will allow all closing costs.

b. If the house is worth more that you are paying for it you increase the selling price to the anticipated appraised adn have the seller pay closing costs or use a grant that brings the extra funds to the table then off again. You may want to contact me for more on grants because I work with one that will provide grants for investor loans.

c. You can also get a gift (subject to the lender) for closing costs.

d. With an increased price the seller can bring the funds to the table for you and take them back with the increased price.

Each case will determine what you can do, typically the lender set the tone. The more conventional the lender the less flexible they will be. Trade off for good rate.

Dallas

Re: Please light up my brain on no-money downs ! - Posted by dan

Posted by dan on February 10, 2001 at 11:03:27:

Dallas, can you e-mail, I need help with getting a grant or loans.Any help will be great, thanks dan

Re: Please light up my brain on no-money downs ! - Posted by Michel

Posted by Michel on February 08, 2001 at 18:08:34:

Thanks. The fog is clearing up.

When you mention 3-6%, are you talking about 3-6% of the sale price or a % of the closing costs?

Re: Please light up my brain on no-money downs ! - Posted by Dallas Allbritton

Posted by Dallas Allbritton on February 09, 2001 at 10:20:11:

You are welcome, and glad I could help. The 3-6% is on the sale price.

Dallas