No Mortgage Payments Up to 6 Months?

Lately, there has been a lot of press about mortgage programs that offer no payments for up to 6 months. What are they?

With these mortgage programs, you can purchase a new home (1-unit primary residence) and have the builder/seller agree to pay up to 100% of the principal and interest portion of your monthly mortgage payment for up to the first six months of the loan term.

Eligible loan products include both fixed and adjustable-rate loans, extended repayment terms (ex. 40-year loans) and affordable lending options for first-time home buyers. Currently, most programs will allow for 3% of your purchase price to be used for your mortgage payments when you finance over 90% of the purchase price. In other words, if you purchase a $200,000 and take out a 95% loan ($190,000), the builder/seller can contribute up to $6,000 for your mortgage payments. Also, if you finance less than 90%, it is possible to receive up to a 6% contribution. The main thing to keep in mind is that principal and interest are included. Taxes, hazard insurance, and mortgage insurance (if applicable) are not included.

Given the current lending environment, mortgage programs are subject to change almost daily. If you are considering a strategy such as the one above, please visit www.noblelenders.com for product updates or call 636.594.5536 for a FREE consultation.