Will a bank write a mortgage with no money down? YES!

Every buyer wants to know how much money they need to get a mortgage.  It is a fair question. Lending institutions want to be confident that the home buyer will do everything they can to stay current on their mortgage payments.  One of the things that raise their confidence is for the buyer to have some “skin” in the game.  In other words, if the buyer has his own money invested in the home, it is more likely that they will stay current.

That is not to say that lending institutions will not take a risk when there is good reason.  Such as with government back mortgages from the Federal Housing Administration (FHA).  If the lender follows a few simple rules, the government will back a mortgage with as little as 3% down.

Well, will a bank write a mortgage for nothing down?

“Our bank has a mortgage called, ‘Destination Home Loan’,” Jason Stiltner from Charter One Bank told me.  “Charter One each year offers a certain number of them to home buyers in the communities we serve,” Stiltner continued.

Stiltner told me that the product enables clients to purchase a home without a down payment.  What is even better, if the buyer’s agent gets the seller to provide concessions at closing, the buyer could pay nothing at closing.  Even getting their earnest money deposit back.

Here are Charter One’s details for qualification:

Either;

• earn less than the average income for the area that you are buying; or,

• purchase a home in an area that is in a low or moderate income area, regardless of income;

Additionally, have;

• a credit score of 660 or better; and,

• a debt to income ratio at or below 45%.

What’s the catch?  Stiltner said Charter One has no catch.  The bank does this because they are dedicated to the communities they serve.  One of the ways they can illustrate this to the community and the government is by providing these mortgages.  

To find out if you qualify, contact Jason Stiltner from Charter One Bank.  He will then review your personal situation and options.  If you qualify, he will start you on the path to homeownership when you might have thought you were out of range.  His phone number is 248-928-6213 and his email is jason.stiltner@charteronebank.com. If you reference this blog post, he will know how you found out about it.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.