No Down Payment? No Problem!
Have you been wanting to own your own home for a while now, but are struggling to save up a down payment because of increased cost of living, or other financial burdens? We understand that sometimes it’s hard to save up thousands of dollars for a down payment when you already have to pay rent, groceries, child care, etc. That is why Ownest wants to help!
Learn more about the program with a brief Q&A (question and answer) below.
Q: How can I purchase a home without a down payment?
A: With the Flex-Down Mortgage, you may be eligible to borrow your down payment. This non-traditional source of down payment may include borrowed sources to the sale such as:
- Personal loan
- Unsecured/Secured line of credit
- Credit card
- Gift from a non-immediate family member.
Q: How much can I borrow?
A: You can borrow between 5% – 9.99% of the purchase price of the home. Please note that if you’d like to use the Flex-Down Mortgage Program offered by Ownest, the purchase price of the home must be less than $1,000,000.00.
Q: Do I have to borrow the entire down payment?
A: No. If you already have money saved up on your own, you can combine the two to make up your down payment.
Q: Does a borrowed down payment save me money?
A: It could – and we hope it does! Say you are currently renting a 3-bedroom home for $2,400/month. A mortgage could cost you less!
On a $400,000, you would need to borrow around $22,000 to cover your down payment and possible closing costs. This means that your mortgage payments could be around $2000/month* including your loan payments. This means that YOU could own your own home for less than you’re currently paying in rent.
*Please note this would not including property taxes, insurance, utilities, etc.
Q: Is this option available for a vacation or secondary home?
A: Absolutely! Should you be able to borrow your down payment from one of the sources above, you can absolutely use the borrowed down payment towards a second home.
Q: Am I able to use this program to purchase a home and rent it out?
A: Unfortunately, no. The home must be owner-occupied.
Q: Is there a catch?
A: There is absolutely no catch, however you must be able to qualify for a mortgage as you would with any other home purchase, and you would have to qualify for the borrowed source as well.
Q: I’m interested! How can I find out if I’m eligible?
A: We’d love to discuss your options and see if you’re eligible. Simply apply today, or contact us! It’s that simple!
More examples and information can be found below: