Mortgages for lower than median houses - no money down - no PMI

3 Replies

If you are in the rent to own business, you know that FHA is NICE but not easy to qualify for.

FHA Qualifications

http://www.fha.com/fha_loan_requirements

3% down is nice but the house needs to appraise for a FHA Appraisal

FHA Appraisal is hard to forecast

http://www.coestervms.com/fha-appraisal-guidelines

PMI Sucks

PMI is a pain in the a$$

See

http://homeguides.sfgate.com/fha-pmi-rules-7346.ht...

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so if you are in the rent to own business, there is good news!

I mentioned in my BP Blog today a NEW NOTHING DOWN HOME LOAN, with NO PMI!

See

http://www.biggerpockets.com/blogs/3/blog_posts/42...

Here is the deal:

-Must be no more than 80% of median price, so if median price is $100K, $80K or less.

-100% financed

-No PMI

-designed to help low- and moderate-income borrowers become homeowners by helping to overcome one of the “most significant barriers” to homeownership, the down payment.

Read the article and use it today for rent to own and lease option assignments!

DISCLAIMER - I have yet to investigate restrictions if any as to area, etc.  So INVESTIGATE!

Article is fairly vague and I couldn't find any information about it on their site. Has this rolled out or is in the works?

@Brian Gibbons GREAT STUFF! I have looked at several of these deals. If you can find the right one your ARV will be awesome!

But beware! DO YOUR HOMEWORK! Today I looked at one that seemed legit, but I decided to knock some neighbors doors. Guess what? 2 houses down I found the nephew of the former owner/tenant that died there. Turns out his side of the family still owns the land while the other side owns the house! The guy never said it had to be moved, so new lesson learned!

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