If you are thinking about buying a new house but have been scared off by the mere thought of a down payment then you are not alone. The economic recession has hit both businesses and households hard. People’s incomes and credit scores are not what they used to be, and this is making it harder to buy property. If you don’t have the cash for a new house then you a probably thinking about getting a loan to finance it. You will be happy to know that you can a get no down payment loan for a house.

A loan for your house

Under normal circumstances when you take out a loan for your house then the bank or the lender will require you to make some sort of down payment. This is almost a guarantee to them that you are serious and that you will be paying back the rest of the loan. It wouldn’t be very wise of a bank to simply give you a large some of money with nothing to fall back on if you decide to bail. The one time the bank will do this is with a no down payment loan. This is basically where you are given the loan and you don’t have to pay a down payment. You simply start by paying off the installments agreed upon in the contract. The downside is that not every one is eligible.

Eligibility

The bank needs some sort of reassurance before they simply give you a no down payment loan for a house. They essentially want to know that you are good for the money they are giving you. The first thing they will look at is your credit record. If it has been good for the last two years then they will think you are good at paying of your debts on time. The next thing they look at is your employment. If you have a permanent job then they will be more likely to give you a loan. You have to prove that you have been working at your current job for more than 6 months. They will also look at your age and health status. If there is a chance you won’t be around that long then they have no guarantees that they will get all their money back. If you fulfill these criteria then you will stand a very good chance of getting a no down payment loan for a house.

No comments »