FLEX OR ZERO DOWN MORTGAGE
- The MortgageMc - Oral McLean
A flex down mortgage option is a great way to buy a primary residence without having the mandatory minimum of 5% down payment saved up. With this program, you borrow the 5% down payment through a loan or line of credit separate from the mortgage.
To qualify you can’t own other properties and you must have strong credit, a score of 680 and above with a clean credit history. It is crucial that, when all your debt is totalled, including the principal and interest payment for this mortgage, property taxes and heating cost for this property, combined with the repayment amounts of the loan or line of credit to be used for the 5% down payment and any other debt such as credit cards, car loans etc, this amount cannot exceed 44% of your annual gross income.
Buying a home will always require some amount of cash upfront, also known as a down payment. ... The main reason is simply that the larger your down payment, the less you'll need to borrow, and the less interest you'll pay. However, just getting approved for a mortgage relies on the down payment as well.