Just Approved James Forte Buyer closes on Danbury condo with no money down for less than a rental
Mortgage lender: James Forte
Property type: Condo in Danbury
Purchase price: $275,000
Borrowing amount: $276,375
Loan type: 30-year fixed conforming
Rate: 5.375 percent
Background: The borrower was a school teacher and was a strong borrower on paper with good credit, job history and debt ratio.
But just because you are a good borrower on paper does not mean you have the means for a down payment.
Furthermore, if you want to purchase a condo with no money down in Connecticut, you would typically need to make less than the median income limit per county and/or the property would need to be in specific rural town. Yet a lot of people out there have good income and want to purchase in a city or non-rural area like Danbury.
The borrower never dreamed they could actually buy a home because they had virtually no down payment and thought they would only be eligible to rent or that if they could actually buy, it would cost them more money per month. The borrower was working with a Realtor who suggested a free consultation for purchase with Forte.
The borrower called Forte with low expectations and was nervous about the process. Forte took the full application and was able to work up a program to purchase without having to use FHA and with no down payment.
Forte’s company Total Mortgage is one of the only lenders in the country with this special 0 percent down program. Most lenders require 3 percent down. Forte was also able to get all the closing costs financed into the loan, so it was literally only $100 out of the borrower’s pocket to buy a house.
Forte explained that he will save money per month as the total payment with taxes and insurance included was less money than comparable homes for rent. In addition, it cost less money out of pocket than a rental, which is typically first month, last month and one or two months security. The client was able to achieve what he thought was not possible.
Moral here is that a very large percentage of people who rent can actually buy for less.
Finance of America in Danbury,