Re: Can you really get houses with no down payment?
You are able to get the no down payment part. What happens is you take out two loans in an 80/20 split. Your normal mortgage is for 80% of the purchase price, and then you have a separate loan for the 20%. Doing it this way makes it look like you have a 20% down payment. Usually the 20% is a shorter loan, such as 15 years. By doing the 80/20 loan you also avoid paying private mortgage insurance, PMI.
As for getting rich, I haven't heard that part. But, I would imagine that they encourage you to take a larger loan and then give you that money.
|