One way to avoid closing costs and down payments while considering 0 down home loans is to keep it in the family. I know in many ways this idea will almost seem like it shouldn’t count, but to be honest, I think it is something more families should consider and deliberate when they plan for the long term.
There are many more benefits to multi-generational homes, but instead of expanding on it myself, I thought you might enjoy this good Coldwell Banker video I found on YouTube discussing the matter:
In most cases, to obtain a mortgage you have to reveal a ton of minute data about your finances and thus quite a bit about your personal life. But some people value their privacy over minimizing their monthly mortgage payments. Others may be self-employed or receive their income via other non-traditional means.
For these people, no doc mortgage loans make for an excellent option. But these loans come with a couple caveats. First, they are not purely zero doc loans. In fact, you will have to reveal both your credit score and the value of your property… and sometimes more. Secondly, mortgage lenders always charge a premium when it comes to interest rates on no doc mortgage loans.
This isn’t too much unlike 0 down home loans. You pay in higher interest and higher monthly payments for the luxury of a no doc mortgage just as you would to avoid a down payment. This is why you should note that quality, legitimate lenders should at least advise you on less expensive alternatives.
