Churchill Mortgage

Zero Down Loans

The lure of putting no money down to buy a home is very enticing to many homebuyers - especially 1st time homebuyers that have not saved any money for a down payment.

For many, this option can work, but not without one critical element: A plan.

When you decide to put no money down on a home, you are financing the entire cost of the home into the loan amount. If you go one step further and have the seller pay all of your closing costs, then you may be using all of the available equity in the home to avoid bringing money to closing.

When you purchase a home at the maximum appraised value in this manner, you have to wait several years before you will have any equity in the home.

Why Is That Important?

Even though most people think they are going to live in a home for seven years or more, many times unforeseen circumstances occur that may cause the need to move (change of jobs, relocation, school issues, zoning, etc.).

If you have to move in the first three years or less, the chances are good that you will have very little equity in your home.

Existing homes rarely will sell for the maximum sales price without the seller paying some closing costs, etc. The normal Realtor commission for listing a home for sale is between 5% and 6%.

Q: What if 6% is all the equity you have built up in your home when you need to sell?

This may force you to bring money to closing, instead of using money from your home sale to pay those costs.

Q: But what if you do not have the money needed to bring to closing?

That's an easy but painful answer. You cannot afford to sell your home! However, if you had a plan at the beginning of the loan, you would have greater flexibility and options for this type of situation.

That is why it is so important to work with a loan specialist that is focused on helping you - not selling you on what seems to be a lower rate or some "new" program that just came along.

The only way we can truly help is to listen, ask you pertinent questions about your needs and goals, and really get an understanding of what events you see coming in the future that could affect your finances. Without this type of consultation, your chances of being in the wrong loan program are greatly increased.

The problem is many loan salespeople you might call (from an ad in the newspaper, see on the internet, or find at your local bank) rarely take the time to understand what is best for you.

In fact, the majority of loan salespeople you might contact spend about 70% of their time looking for customers and attending seminars about how to "sell" their customers, instead of learning how to serve your needs, present and future.

How We Are Different

Our goal is to really take the time to listen and understand what you need, why you need it, and what future events or circumstances we may need to prepare for when creating your strategy. Then we present you with the options that best fit your needs, and work together to create a plan that is specific to your personal situation.

Many times we will present our customers with loan strategies and programs they didn't even know were possible, that give them real control and understanding of how their mortgage will work for them in the years to come.

It's the difference between being an order taker, and being a true consultant for our customer.

Is a Zero Down Loan Really the Best Program for You?

Answering that question takes a true understanding of your current and future needs, as well as some counseling regarding items that may cause you issues with a $0 down loan under certain circumstances.

We have a wide array of loan programs that allow our borrowers to buy a home for as little as $0 Down, and we take pride in finding which program is best for your personal needs.

Get Started and see what loan options are available for you!