Friday, April 25, 2008

ZERO DOWNPAYMENT? Denver Home Search?

I got an e-mail asking a fairly standard question...where can I find a zero down loan???

Here is the reply that I think answers 2 questions, where can I get a zero down loan, and what are the alternatives? With all the press about the credit crisis one would think the message gets through, but maybe not?

I will guess the house will be in Littleton, Centennial or Englewood. All
established and mature areas of Denver. The City of Littleton probably has more code enforcement than anyplace else, but the areas known as Littleton
(unincorporated Jefferson County) mostly do not.

There is only a single challenge I foresee, unless one of you is a veteran, and
that is zero down payment. Zero Down loans disappeared in Denver about 6 months ago.
However a veteran who has their discharge papers in order can get a zero
down VA loan for their Denver home.

There are no other loans currently available at good interest rates (less than 9%). And just so it is clear, I do not even know where you might find one at this rate. Loans with this interest rate are known as b-c PAPER and are the reason we have the current "credit crunch" you have heard about in the news. Once the wall street folks figured out they were not a good deal, they quit buying them from the mortgage companies, and so the mortgage companies quit "originating" them. There simply is no zero down except for VA.

Please do not mis-read me on this, but I do not want you dis-appointed. And I do want you to be able to buy a home.

There are FHA loans available with as little as 3% down and that money can be a
gift from Mom & Dad or?. In your stated purchase price that is about $7,000. However, they do insist you have something in the basket before they underwrite the loan. And these interest rates are in the 6% range. So it is worth the effort.

Therefore, were I you, before I did anything else, I would be in touch with
any of the lenders on my page at Figure out the loan and get ready from that end. Then we start the house hunting to find that perfect home.

About these lenders; just so you know, I do not receive any compensation or pay from them, nor do I want any. I do know I can trust them to do good work for you and give you excellent advice.

Should this kind of service could be valuable to you or your friends, put my 22 years of experience to work for you, learning about your new home town! Whether it is Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at Drop me a note to

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