You will read a lot of RUBBISH on the internet about No Money Down is fraud. These amateur investors do not understand the concept of “getting the desired outcome YOU want”.
They believe it cannot be done and consult people such as solicitors, other investors and other sporadic people in the property industry to back up their story. Anyone knows that if you ask enough you can get the answer you want.
To get the desired outcome YOU want requires patience, skill and perseverance. That is why alot of property people think it simply cannot be done. Just remember this:
As long as you are answering EVERYTHING your lender asks you cannot be doing anything wrong.
Now that does not mean you have to put in big red writing and in capital letters on your mortgage application form “I AM BUYING THIS PROPERTY WITH NONE OF MY OWN MONEY”. No. You just answer the questions truthfully.
Lenders have the constant issue of asking the right questions. Mortgage application forms have got bigger in size to keep up with no money down type of deals. Lenders are happy for you to:
- Borrow the deposit
- Remortgage the property within 6 months
- Have a gifted deposit
- Lend on market value
The problem is alot of these property people do not know how to structure the deal so you come out of the deal with none of your money left in the deal. I will let you know alot of these property people do not have large portfolios and still have day jobs.
So stick to the truth and you can never go wrong. My personal opinion is these lenders are happy to lend 100% of the purchase price. They are human at the end of the day. Every now and again they pull a few loan offers as they have to be seen to be keeping a reign on things but they know. The reason I know they know is their own solicitors scrutinise each transaction to make sure the mortgage is kosher.
So when you read on forums and you see comments like “Well I asked the lender if I could borrow 100% of the purchase price and they said no, that’s fraud” just take it with a pinch of salt. Until they submit an application form with the correct wording on all paperwork will the penny drop for these sceptics.
Until then they will have to watch passively as we all go on massive buying sprees