How to take a mortgage without a down payment
How to take a mortgage without a down payment
Most young families face housingQuestion. But not every family can accumulate the necessary amount to purchase their own living space. Therefore, often the only possible option is a mortgage. However, most banks will not give out a mortgage loan, if the borrower does not have money for the initial payment.
Given the current rise in housing prices, evenThe minimum allowable amount of the initial installment may be a tidy sum, for the accumulation of which can take many years. What to do if the money for the initial payment is not enough, but you want to buy housing now? There are several solutions to this problem.
Option 1
The most obvious way to get a mortgagecredit without an initial installment - to find a bank with a corresponding mortgage program. Despite the fact that such programs are risky enough for banks, such banks still exist. The disadvantage of this option is that interest on the mortgage will be high enough, because banks are trying to justify their risks.
Option 2
You can draw up a consumer loan anduse it as a down payment. The minus of this option is obvious - for some time the borrower will have to pay off two loans at once, so his incomes should be high enough. At the same time, it is necessary to take into account that the creditor bank will necessarily check the credit history of the borrower and can reduce the desired amount of the mortgage loan due to the fact that he already has an unpaid loan.
Option 3
In case the borrower already ownsany real estate, then he can use it as an additional collateral when registering a mortgage transaction. Thus, the bank receives a double guarantee of performance of obligations by the borrower, so the interest will not be overstated. However, it should be borne in mind that mortgaged property should be profitable and located in the same region as the bank that issues the loan.
Option 4
If the borrower is certified to receivematernity capital, the problem of the initial contribution is practically solved. This option is the most optimal in the absence of own savings, because the interest rate in this case does not increase. The only disadvantage of this option is that for the use of the parent capital as an initial contribution, it is necessary that at least 3 years have passed since the birth of the second child.
Thus, the situation where there is no money for an initial mortgage payment is not completely hopeless. And for someone, one of these options can become a real solution to the housing issue.
